Post Utme Ims U 2025 Economics Question 33

Practice objective / multiple choice question 33 from the 2025 Post Utme Ims U Economics examination.

Post Utme Ims U 2025 Economics Objective / Multiple Choice
Question 33 POST_UTME_IMS_U • 2025 • ECONOMICS • objective

A government imposes a tax on a commodity to reduce its consumption. If the demand for the commodity is inelastic, what will be the effect on the government's revenue?

Answer Options

A. The government's revenue will increase.
Correct Answer B. The government's revenue will decrease.
C. The government's revenue will remain the same.
D. The effect on the government's revenue is uncertain.
Correct Answer
B
Correct Option:
The government's revenue will decrease.

About This Question

This is Post Utme Ims U 2025 Economics Question 33. It is one of the objective questions from the 2025 Post Utme Ims U Economics examination.

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