Post Utme Mountain Top University 2018 Economics Question 4

Practice objective / multiple choice question 4 from the 2018 Post Utme Mountain Top University Economics examination.

Post Utme Mountain Top University 2018 Economics Objective / Multiple Choice
Question 4 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2018 • ECONOMICS • objective

A government is considering implementing a tax on a particular good. If the tax is passed on to consumers, what will happen to the demand for the good?

Answer Options

A. The demand for the good will increase because consumers will be willing to pay a higher price.
Correct Answer B. The demand for the good will decrease because consumers will be unwilling to pay a higher price.
C. The demand for the good will remain unchanged because the tax is not passed on to consumers.
D. The demand for the good will increase because consumers will be willing to pay a higher price due to the tax.
Correct Answer
B
Correct Option:
The demand for the good will decrease because consumers will be unwilling to pay a higher price.

About This Question

This is Post Utme Mountain Top University 2018 Economics Question 4. It is one of the objective questions from the 2018 Post Utme Mountain Top University Economics examination.

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