Post Utme Rhema University 2021 Economics Question 4

Practice objective / multiple choice question 4 from the 2021 Post Utme Rhema University Economics examination.

Post Utme Rhema University 2021 Economics Objective / Multiple Choice
Question 4 POST_UTME_RHEMA_UNIVERSITY • 2021 • ECONOMICS • objective

A government imposes a tax of $10 per unit on a firm that produces a good with a price elasticity of demand of -2. If the firm's initial output is 100 units, what is the new output level after the tax is imposed?

Answer Options

Correct Answer A. 80 units
B. 90 units
C. 100 units
D. 110 units
Correct Answer
A
Correct Option:
80 units

About This Question

This is Post Utme Rhema University 2021 Economics Question 4. It is one of the objective questions from the 2021 Post Utme Rhema University Economics examination.

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