Post Utme Uniosun 2025 Economics Question 7

Practice objective / multiple choice question 7 from the 2025 Post Utme Uniosun Economics examination.

Post Utme Uniosun 2025 Economics Objective / Multiple Choice
Question 7 POST_UTME_UNIOSUN • 2025 • ECONOMICS • objective

A government imposes a tax on a firm's output. The firm's supply curve shifts to the left. What is the effect on the equilibrium price and quantity in the market?

Answer Options

Correct Answer A. The equilibrium price increases and the equilibrium quantity decreases.
B. The equilibrium price decreases and the equilibrium quantity increases.
C. The equilibrium price remains the same and the equilibrium quantity decreases.
D. The equilibrium price increases and the equilibrium quantity remains the same.
Correct Answer
A
Correct Option:
The equilibrium price increases and the equilibrium quantity decreases.

About This Question

This is Post Utme Uniosun 2025 Economics Question 7. It is one of the objective questions from the 2025 Post Utme Uniosun Economics examination.

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