Post Utme Joseph Ayo Babalola University 2024 Economics Question 29

Practice objective / multiple choice question 29 from the 2024 Post Utme Joseph Ayo Babalola University Economics examination.

Post Utme Joseph Ayo Babalola University 2024 Economics Objective / Multiple Choice
Question 29 POST_UTME_JOSEPH_AYO_BABALOLA_UNIVERSITY • 2024 • ECONOMICS • objective

A government is considering a tax on a good with a demand function \( p = 100 - 2q \), where (p) is the price and (q) is the quantity demanded. If the government wants to raise revenue of $100 million, what is the optimal tax rate?

Answer Options

A. 10%
Correct Answer B. 20%
C. 30%
D. 40%
Correct Answer
B
Correct Option:
20%

About This Question

This is Post Utme Joseph Ayo Babalola University 2024 Economics Question 29. It is one of the objective questions from the 2024 Post Utme Joseph Ayo Babalola University Economics examination.

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