Post Utme Lasu 2022 Economics Question 7

Practice objective / multiple choice question 7 from the 2022 Post Utme Lasu Economics examination.

Post Utme Lasu 2022 Economics Objective / Multiple Choice
Question 7 POST_UTME_LASU • 2022 • ECONOMICS • objective
Post Utme Lasu 2022 Economics Question 7 diagram

A government imposes a tax on a firm's output. The firm's supply curve shifts from \( S_0 \) to \( S_1 \). What is the effect of the tax on the equilibrium price and quantity?

Answer Options

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

About This Question

This is Post Utme Lasu 2022 Economics Question 7. It is one of the objective questions from the 2022 Post Utme Lasu Economics examination.

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