Post Utme Joseph Ayo Babalola University 2023 Economics Question 7

Practice objective / multiple choice question 7 from the 2023 Post Utme Joseph Ayo Babalola University Economics examination.

Post Utme Joseph Ayo Babalola University 2023 Economics Objective / Multiple Choice
Question 7 POST_UTME_JOSEPH_AYO_BABALOLA_UNIVERSITY • 2023 • ECONOMICS • objective
Post Utme Joseph Ayo Babalola University 2023 Economics Question 7 diagram

A government imposes a tax on a firm's output. The firm's supply curve shifts from S1 to S2. What is the effect on the equilibrium price and quantity?

Answer Options

Correct Answer A. Price increases, quantity decreases
B. Price decreases, quantity increases
C. Price increases, quantity increases
D. Price decreases, quantity decreases
Correct Answer
A
Correct Option:
Price increases, quantity decreases

About This Question

This is Post Utme Joseph Ayo Babalola University 2023 Economics Question 7. It is one of the objective questions from the 2023 Post Utme Joseph Ayo Babalola University Economics examination.

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