Waec Model Questions Vol1 2018 Economics Question 18

Practice objective / multiple choice question 18 from the 2018 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2018 Economics Objective / Multiple Choice Medium Difficulty
Question 18 WAEC_MODEL_QUESTIONS_VOL1 • 2018 • ECONOMICS • objective

A specific tax of ₦50 per unit is imposed on a good. The market demand is Qd = 500 - 2P and the market supply (before tax) is Qs = 3P - 150, where P is the price in Naira. Determine (a) the price paid by consumers after the tax, (b) the price received by producers after the tax, (c) the equilibrium quantity after the tax, (d) the total tax revenue, and (e) the dead‑weight loss caused by the tax.

Answer Options

A. Tax revenue = ₦10,500; Deadweight loss = ₦1,200
B. Tax revenue = ₦9,500; Deadweight loss = ₦1,800
Correct Answer C. Tax revenue = ₦9,000; Deadweight loss = ₦1,500
D. Tax revenue = ₦8,000; Deadweight loss = ₦2,000
Correct Answer
C
Correct Option:
Tax revenue = ₦9,000; Deadweight loss = ₦1,500

About This Question

This is Waec Model Questions Vol1 2018 Economics Question 18. It is one of the objective questions from the 2018 Waec Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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