Post Utme Unn 2025 Economics Question 15

Practice objective / multiple choice question 15 from the 2025 Post Utme Unn Economics examination.

Post Utme Unn 2025 Economics Objective / Multiple Choice
Question 15 POST_UTME_UNN • 2025 • ECONOMICS • objective

A government is considering a tax on a particular good. If the tax increases the price of the good by 20%, and the demand for the good is elastic, what is the likely effect on the government's revenue from the tax?

Answer Options

A. The government's revenue from the tax will increase.
Correct Answer B. The government's revenue from the tax will decrease.
C. The government's revenue from the tax will remain the same.
D. The effect on the government's revenue is uncertain.
Correct Answer
B
Correct Option:
The government's revenue from the tax will decrease.

About This Question

This is Post Utme Unn 2025 Economics Question 15. It is one of the objective questions from the 2025 Post Utme Unn Economics examination.

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