Post Utme Lasu 2020 Economics Question 33

Practice objective / multiple choice question 33 from the 2020 Post Utme Lasu Economics examination.

Post Utme Lasu 2020 Economics Objective / Multiple Choice

Question 33 POST_UTME_LASU • 2020 • ECONOMICS • objective

A government imposes a tax of ₦10 on a good that is sold at a price of ₦100. If the demand curve is elastic and the supply curve is inelastic, what is the incidence of the tax?

Correct Answer A. The tax is borne entirely by the consumers.

B. The tax is borne entirely by the producers.

C. The tax is shared equally between the consumers and producers.

D. The tax is borne entirely by the government.

Correct Answer

Correct Option:

The tax is borne entirely by the consumers.

This is Post Utme Lasu 2020 Economics Question 33. It is one of the objective questions from the 2020 Post Utme Lasu Economics examination.

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