Post Utme Mountain Top University 2021 Economics Question 8

Practice objective / multiple choice question 8 from the 2021 Post Utme Mountain Top University Economics examination.

Post Utme Mountain Top University 2021 Economics Objective / Multiple Choice
Question 8 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2021 • ECONOMICS • objective

The government of Nigeria has introduced a new tax on luxury goods to raise revenue. What is the likely effect of this tax on the demand for luxury goods?

Answer Options

A. The demand for luxury goods will increase
Correct Answer B. The demand for luxury goods will decrease
C. The demand for luxury goods will remain unchanged
D. The demand for luxury goods will be unaffected
Correct Answer
B
Correct Option:
The demand for luxury goods will decrease

About This Question

This is Post Utme Mountain Top University 2021 Economics Question 8. It is one of the objective questions from the 2021 Post Utme Mountain Top University Economics examination.

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