Waec Model Questions Vol1 2021 Economics Question 2

Practice essay / theory question 2 from the 2021 Waec Model Questions Vol1 Economics examination. This question covers Demand and Supply, Market Equilibrium, Tax Incidence, Dead‑weight Loss .

Waec Model Questions Vol1 2021 Economics Essay / Theory
Topics: Demand and Supply Market Equilibrium Tax Incidence Dead‑weight Loss
Question 2 WAEC_MODEL_QUESTIONS_VOL1 • 2021 • ECONOMICS • essay

The market for wheat in a rural region is described by the following linear demand and supply equations: Qd = 1200 – 4P and Qs = 200 + 2P , where Q is quantity in tonnes and P is price in Naira per tonne.

Question Parts

( a )
Calculate the equilibrium price and quantity before any government intervention.
( b )
The government imposes a specific tax of N200 per tonne on wheat producers. Show how the supply curve shifts and determine the new equilibrium price paid by consumers, the price received by producers, and the new equilibrium quantity.
( c )
Compute the dead‑weight loss (DWL) resulting from the tax.
( d )
Briefly evaluate one advantage and one disadvantage of using a tax to correct a market externality in the wheat market.

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About This Question

This is Waec Model Questions Vol1 2021 Economics Question 2. It is one of the essay questions from the 2021 Waec Model Questions Vol1 Economics examination.

The question covers Demand and Supply, Market Equilibrium, Tax Incidence, Dead‑weight Loss .

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