Post Utme Uniosun 2024 Economics Question 16

Practice objective / multiple choice question 16 from the 2024 Post Utme Uniosun Economics examination.

Post Utme Uniosun 2024 Economics Objective / Multiple Choice
Question 16 POST_UTME_UNIOSUN • 2024 • ECONOMICS • objective

A government imposes a tax on a good to reduce its consumption. If the tax causes the demand curve to shift leftward and the supply curve to shift rightward, what is the likely 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 unchanged, and the equilibrium quantity will decrease.
D. The equilibrium price will increase, and the equilibrium quantity will remain unchanged.
Correct Answer
A
Correct Option:
The equilibrium price will increase, and the equilibrium quantity will decrease.

About This Question

This is Post Utme Uniosun 2024 Economics Question 16. It is one of the objective questions from the 2024 Post Utme Uniosun Economics examination.

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