Post Utme Lead City University 2024 Economics Question 18

Practice objective / multiple choice question 18 from the 2024 Post Utme Lead City University Economics examination.

Post Utme Lead City University 2024 Economics Objective / Multiple Choice
Question 18 POST_UTME_LEAD_CITY_UNIVERSITY • 2024 • ECONOMICS • objective

The government of Nigeria has introduced a new tax policy to increase revenue. The policy includes a 10% increase in the value-added tax (VAT) rate. Assuming the demand for goods is elastic, what will be the effect of the tax increase on the revenue collected?

Answer Options

A. The revenue collected will increase by 10%
Correct Answer B. The revenue collected will decrease by 10%
C. The revenue collected will remain the same
D. The revenue collected will increase by 20%
Correct Answer
B
Correct Option:
The revenue collected will decrease by 10%

About This Question

This is Post Utme Lead City University 2024 Economics Question 18. It is one of the objective questions from the 2024 Post Utme Lead City University Economics examination.

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