Post Utme Mountain Top University 2019 Economics Question 29

Practice objective / multiple choice question 29 from the 2019 Post Utme Mountain Top University Economics examination.

Post Utme Mountain Top University 2019 Economics Objective / Multiple Choice

Question 29 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2019 • ECONOMICS • objective

A government imposes a tax on a firm's output. If the firm's supply curve shifts to the left, what is the effect on the equilibrium price and quantity?

Answer Options

Correct Answer A. Equilibrium price increases and quantity decreases

B. Equilibrium price decreases and quantity increases

C. Equilibrium price remains the same and quantity decreases

D. Equilibrium price remains the same and quantity increases

Correct Answer

Correct Option:

Equilibrium price increases and quantity decreases

About This Question

This is Post Utme Mountain Top University 2019 Economics Question 29. It is one of the objective questions from the 2019 Post Utme Mountain Top University Economics examination.

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