mdcat logical reasoning MCQ #85

The government has introduced a new tax on luxury goods. What is the likely effect on the sales of these goods?

mdcat logical reasoning MCQ #85

  1. Question 1

    Q1. The government has introduced a new tax on luxury goods. What is the likely effect on the sales of these goods?

    • A) Increased sales due to higher demand
    • B) Decreased sales due to higher prices
    • C) No change in sales
    • D) Shift to cheaper alternatives

    Answer: Decreased sales due to higher prices

    Explanation: Higher prices due to the tax can lead to decreased sales. USAT, HAT and MDCAT analytical sections repeat this pattern.