Post Utme Ui 2017 Economics Question 11

Practice objective / multiple choice question 11 from the 2017 Post Utme Ui Economics examination.

Post Utme Ui 2017 Economics Objective / Multiple Choice
Question 11 POST_UTME_UI • 2017 • ECONOMICS • objective

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

About This Question

This is Post Utme Ui 2017 Economics Question 11. It is one of the objective questions from the 2017 Post Utme Ui Economics examination.

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