Post Utme Rsu 2018 Economics Question 38

Practice objective / multiple choice question 38 from the 2018 Post Utme Rsu Economics examination.

Post Utme Rsu 2018 Economics Objective / Multiple Choice
Question 38 POST_UTME_RSU • 2018 • ECONOMICS • objective
Post Utme Rsu 2018 Economics Question 38 diagram

The government of a country imposes a tax on a commodity. The tax revenue is used to finance a public good. The effect of the tax on the equilibrium price and quantity of the commodity is shown in the diagram below.

Answer Options

Correct Answer A. The tax causes a shift in the supply curve, resulting in a higher equilibrium price and quantity.
B. The tax causes a shift in the demand curve, resulting in a lower equilibrium price and quantity.
C. The tax causes a shift in the supply curve, resulting in a lower equilibrium price and quantity.
D. The tax causes a shift in the demand curve, resulting in a higher equilibrium price and quantity.
Correct Answer
A
Correct Option:
The tax causes a shift in the supply curve, resulting in a higher equilibrium price and quantity.

About This Question

This is Post Utme Rsu 2018 Economics Question 38. It is one of the objective questions from the 2018 Post Utme Rsu Economics examination.

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