Post Utme Ui 2018 Economics Question 21

Practice objective / multiple choice question 21 from the 2018 Post Utme Ui Economics examination.

Post Utme Ui 2018 Economics Objective / Multiple Choice
Question 21 POST_UTME_UI • 2018 • ECONOMICS • objective

Suppose the government of a country imposes a tax on a firm's output. If the firm's supply curve shifts to the left, what will happen to the equilibrium price and quantity in the market?

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 decrease.
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 2018 Economics Question 21. It is one of the objective questions from the 2018 Post Utme Ui Economics examination.

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