Waec Model Questions Vol1 2022 Economics Question 25
Practice objective / multiple choice question 25 from the 2022 Waec Model Questions Vol1 Economics examination.
A small open economy has domestic demand for a good given by Q_d = 800 - 4P and domestic supply by Q_s = 200 + 2P, where P is the price per unit. The world price is ₦120. Initially the economy is a net exporter. The government introduces an export tax of ₦15 per unit and an import tariff of ₦10 per unit. Assuming the country remains an exporter after the taxes, calculate the domestic price after the taxes, the quantities demanded and supplied, the government revenue from the export tax, and the net change in national welfare (sum of consumer surplus, producer surplus and government revenue).
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This is Waec Model Questions Vol1 2022 Economics Question 25. It is one of the objective questions from the 2022 Waec Model Questions Vol1 Economics examination.
Difficulty level: Hard .
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