Post Utme Ksu 2024 Economics Question 20

Practice objective / multiple choice question 20 from the 2024 Post Utme Ksu Economics examination.

Post Utme Ksu 2024 Economics Objective / Multiple Choice

Question 20 POST_UTME_KSU • 2024 • ECONOMICS • objective

The government of Nigeria has introduced a new tax on luxury goods. The tax is levied at a rate of 10% on the value of the goods. Which of the following is a likely effect of this tax?

A. An increase in the demand for luxury goods

Correct Answer B. A decrease in the demand for luxury goods

C. No change in the demand for luxury goods

D. An increase in the supply of luxury goods

Correct Answer

Correct Option:

A decrease in the demand for luxury goods

This is Post Utme Ksu 2024 Economics Question 20. It is one of the objective questions from the 2024 Post Utme Ksu Economics examination.

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