Post Utme Uniport 2022 Economics Question 21

Practice objective / multiple choice question 21 from the 2022 Post Utme Uniport Economics examination.

Post Utme Uniport 2022 Economics Objective / Multiple Choice
Question 21 POST_UTME_UNIPORT • 2022 • ECONOMICS • objective

A government imposes a tax on a particular good to reduce its consumption. If the demand curve for the good is downward sloping and the tax is not passed on to consumers, 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 remain the same, and the equilibrium quantity will decrease.
D. The equilibrium price will increase, and the equilibrium quantity will increase.
Correct Answer
A
Correct Option:
The equilibrium price will increase, and the equilibrium quantity will decrease.

About This Question

This is Post Utme Uniport 2022 Economics Question 21. It is one of the objective questions from the 2022 Post Utme Uniport Economics examination.

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