Post Utme Summit University 2017 Economics Question 13

Practice objective / multiple choice question 13 from the 2017 Post Utme Summit University Economics examination.

Post Utme Summit University 2017 Economics Objective / Multiple Choice
Question 13 POST_UTME_SUMMIT_UNIVERSITY • 2017 • ECONOMICS • objective

The government of a country imposes a tax on a good that is perfectly inelastic in demand. What will be the effect on the equilibrium price and quantity of the good?

Answer Options

Correct Answer A. The equilibrium price will increase, and the equilibrium quantity will decrease
B. The equilibrium price will decrease, and the equilibrium quantity will increase
C. The equilibrium price will remain the same, and the equilibrium quantity will remain the same
D. The equilibrium price will increase, and the equilibrium quantity will increase
Correct Answer
A
Correct Option:
The equilibrium price will increase, and the equilibrium quantity will decrease

About This Question

This is Post Utme Summit University 2017 Economics Question 13. It is one of the objective questions from the 2017 Post Utme Summit University Economics examination.

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