Post Utme Lautech 2025 Economics Question 32

Practice objective / multiple choice question 32 from the 2025 Post Utme Lautech Economics examination.

Post Utme Lautech 2025 Economics Objective / Multiple Choice
Question 32 POST_UTME_LAUTECH • 2025 • ECONOMICS • objective

A government is considering a tax on a good that is currently untaxed. If the tax is set at 10% of the good's price, and the demand for the good is elastic, what will happen to the quantity demanded?

Answer Options

A. Increase
Correct Answer B. Decrease
C. No change
D. Uncertain
Correct Answer
B
Correct Option:
Decrease

About This Question

This is Post Utme Lautech 2025 Economics Question 32. It is one of the objective questions from the 2025 Post Utme Lautech Economics examination.

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