Waec Model Questions Vol1 2023 Economics Question 2

Practice essay / theory question 2 from the 2023 Waec Model Questions Vol1 Economics examination. This question covers Demand Curve, Supply Curve, Tax Incidence, Market Equilibrium .

Waec Model Questions Vol1 2023 Economics Essay / Theory
Topics: Demand Curve Supply Curve Tax Incidence Market Equilibrium
Question 2 WAEC_MODEL_QUESTIONS_VOL1 • 2023 • ECONOMICS • essay

A market for bottled water in a Nigerian city is described as follows. - At a price of ₦150 per bottle, the quantity demanded is 800 bottles per day. - At a price of ₦250 per bottle, the quantity demanded falls to 200 bottles per day. - The market is in equilibrium at a price of ₦200 per bottle with a quantity of 500 bottles per day. - When the price is ₦300 per bottle, producers are willing to supply 600 bottles per day. The government then imposes a specific tax of ₦50 on each bottle sold, payable by producers.

Question Parts

( a )
Derive the linear demand equation for bottled water from the two demand data points given.
( b )
Using the equilibrium point (₦200, 500) and the supply data point at ₦300, derive the linear supply equation before the tax.

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About This Question

This is Waec Model Questions Vol1 2023 Economics Question 2. It is one of the essay questions from the 2023 Waec Model Questions Vol1 Economics examination.

The question covers Demand Curve, Supply Curve, Tax Incidence, Market Equilibrium .

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