Post Utme Redeemers University 2024 Economics Question 3

Practice objective / multiple choice question 3 from the 2024 Post Utme Redeemers University Economics examination.

Post Utme Redeemers University 2024 Economics Objective / Multiple Choice
Question 3 POST_UTME_REDEEMERS_UNIVERSITY • 2024 • ECONOMICS • objective

Consider a tax on a good that is perfectly inelastic. If the pre-tax price is ₦100 and the quantity demanded is 100 units, and the tax rate is 20%, what will be the new equilibrium price and quantity?

Answer Options

A. New price = ₦120, New quantity = 100
Correct Answer B. New price = ₦120, New quantity = 80
C. New price = ₦100, New quantity = 80
D. New price = ₦80, New quantity = 100
Correct Answer
B
Correct Option:
New price = ₦120, New quantity = 80

About This Question

This is Post Utme Redeemers University 2024 Economics Question 3. It is one of the objective questions from the 2024 Post Utme Redeemers University Economics examination.

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