Waec Model Questions Vol1 2021 Economics Question 25

Practice objective / multiple choice question 25 from the 2021 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2021 Economics Objective / Multiple Choice Medium Difficulty
Question 25 WAEC_MODEL_QUESTIONS_VOL1 • 2021 • ECONOMICS • objective

The government imposes a specific tax of ₦50 per unit on a good whose demand is Qd = 800 - 4P and supply is Qs = -200 + 6P, where P is the price before tax. Find the price paid by consumers, the price received by producers, the total tax revenue, and the dead‑weight loss caused by the tax.

Answer Options

A. Consumer price = ₦140; Producer price = ₦90; Tax revenue = ₦15,600; Dead‑weight loss = ₦3,500
B. Consumer price = ₦130; Producer price = ₦85; Tax revenue = ₦13,000; Dead‑weight loss = ₦2,800
C. Consumer price = ₦120; Producer price = ₦70; Tax revenue = ₦12,000; Dead‑weight loss = ₦2,500
Correct Answer D. Consumer price = ₦130; Producer price = ₦80; Tax revenue = ₦14,000; Dead‑weight loss = ₦3,000
Correct Answer
D
Correct Option:
Consumer price = ₦130; Producer price = ₦80; Tax revenue = ₦14,000; Dead‑weight loss = ₦3,000

About This Question

This is Waec Model Questions Vol1 2021 Economics Question 25. It is one of the objective questions from the 2021 Waec Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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