Post Utme Nile University 2020 Economics Question 8

Practice objective / multiple choice question 8 from the 2020 Post Utme Nile University Economics examination.

Post Utme Nile University 2020 Economics Objective / Multiple Choice
Question 8 POST_UTME_NILE_UNIVERSITY • 2020 • ECONOMICS • objective

A government imposes a tax on a commodity, cau\sing the supply curve to shift to the left. If the demand curve is inelastic and the tax is not passed on to consumers, what happens to the equilibrium price and quantity?

Answer Options

Correct Answer A. Price increases, quantity decreases
B. Price decreases, quantity increases
C. Price remains the same, quantity decreases
D. Price increases, quantity increases
Correct Answer
A
Correct Option:
Price increases, quantity decreases

About This Question

This is Post Utme Nile University 2020 Economics Question 8. It is one of the objective questions from the 2020 Post Utme Nile University Economics examination.

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