Post Utme Oau 2017 Economics Question 7

Practice objective / multiple choice question 7 from the 2017 Post Utme Oau Economics examination.

Post Utme Oau 2017 Economics Objective / Multiple Choice
Question 7 POST_UTME_OAU • 2017 • ECONOMICS • objective
Post Utme Oau 2017 Economics Question 7 diagram

A government is considering a tax on a particular good. The supply curve for the good is given by P = 2Q + 10, and the demand curve is given by P = 50 - 2Q. If the government imposes a tax of ₦5 per unit, what will be the new equilibrium price and quantity?

Answer Options

Correct Answer A. New equilibrium price = ₦25, New equilibrium quantity = 5
B. New equilibrium price = ₦30, New equilibrium quantity = 10
C. New equilibrium price = ₦20, New equilibrium quantity = 5
D. New equilibrium price = ₦15, New equilibrium quantity = 10
Correct Answer
A
Correct Option:
New equilibrium price = ₦25, New equilibrium quantity = 5

About This Question

This is Post Utme Oau 2017 Economics Question 7. It is one of the objective questions from the 2017 Post Utme Oau Economics examination.

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