Post Utme Lead City University 2023 Economics Question 27

Practice objective / multiple choice question 27 from the 2023 Post Utme Lead City University Economics examination.

Post Utme Lead City University 2023 Economics Objective / Multiple Choice

Question 27 POST_UTME_LEAD_CITY_UNIVERSITY • 2023 • ECONOMICS • objective

A government wants to implement a tax on a particular good to reduce its consumption. If the demand for the good is given by Q = 100 - 2P and the supply is given by Q = 2P - 10, what is the optimal price and quantity of the good?

Answer Options

A. P^* = 20, Q^* = 20

Correct Answer B. P^* = 22.5, Q^* = 22.5

C. P^* = 25, Q^* = 25

D. P^* = 30, Q^* = 30

Correct Answer

Correct Option:

P^* = 22.5, Q^* = 22.5

About This Question

This is Post Utme Lead City University 2023 Economics Question 27. It is one of the objective questions from the 2023 Post Utme Lead City University Economics examination.

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