Waec Model Questions Vol1 2018 Economics Question 5

Practice objective / multiple choice question 5 from the 2018 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2018 Economics Objective / Multiple Choice Easy Difficulty
Question 5 WAEC_MODEL_QUESTIONS_VOL1 • 2018 • ECONOMICS • objective

The demand for a product is Qd = 800 - 4P and the supply is Qs = 200 + 2P, where Q is quantity and P is price in ₦. (a) Find the equilibrium price and quantity. (b) If the government imposes a tax of ₦50 per unit on sellers, what is the new equilibrium price paid by buyers?

Answer Options

A. Equilibrium price = ₦120, quantity = 360; after tax, price paid by buyers ≈ ₦132
Correct Answer B. Equilibrium price = ₦100, quantity = 400; after tax, price paid by buyers ≈ ₦117
C. Equilibrium price = ₦100, quantity = 350; after tax, price paid by buyers ≈ ₦115
D. Equilibrium price = ₦80, quantity = 480; after tax, price paid by buyers ≈ ₦102
Correct Answer
B
Correct Option:
Equilibrium price = ₦100, quantity = 400; after tax, price paid by buyers ≈ ₦117

About This Question

This is Waec Model Questions Vol1 2018 Economics Question 5. It is one of the objective questions from the 2018 Waec Model Questions Vol1 Economics examination.

Difficulty level: Easy .

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