Post Utme Summit University 2019 Economics Question 4

Practice objective / multiple choice question 4 from the 2019 Post Utme Summit University Economics examination.

Post Utme Summit University 2019 Economics Objective / Multiple Choice
Question 4 POST_UTME_SUMMIT_UNIVERSITY • 2019 • ECONOMICS • objective

A government is considering a tax on a particular good. If the tax is 10% of the price of the good, and the demand curve for the good is given by Q = 100 - 2P, what is the effect on the equilibrium price and quantity?

Answer Options

Correct Answer A. Price increases, quantity decreases
B. Price decreases, quantity increases
C. Price remains the same, quantity decreases
D. Price remains the same, quantity increases
Correct Answer
A
Correct Option:
Price increases, quantity decreases

About This Question

This is Post Utme Summit University 2019 Economics Question 4. It is one of the objective questions from the 2019 Post Utme Summit University Economics examination.

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