Post Utme Veritas University 2019 Economics Question 30

Practice objective / multiple choice question 30 from the 2019 Post Utme Veritas University Economics examination.

Post Utme Veritas University 2019 Economics Objective / Multiple Choice
Question 30 POST_UTME_VERITAS_UNIVERSITY • 2019 • ECONOMICS • objective

The government of Nigeria has implemented a tax on imported goods. U\sing the concept of tax incidence, explain how this tax will affect the consumer and the producer.

Answer Options

Correct Answer A. The tax will increase the price of the good and reduce the quantity demanded.
B. The tax will decrease the price of the good and increase the quantity demanded.
C. The tax will have no effect on the price and quantity of the good.
D. The tax will increase the price of the good and increase the quantity demanded.
Correct Answer
A
Correct Option:
The tax will increase the price of the good and reduce the quantity demanded.

About This Question

This is Post Utme Veritas University 2019 Economics Question 30. It is one of the objective questions from the 2019 Post Utme Veritas University Economics examination.

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