Gce Model Questions Vol1 2018 Agricultural Science Question 43
Practice objective / multiple choice question 43 from the 2018 Gce Model Questions Vol1 Agricultural Science examination.
The demand for a crop is \( Q_d = 1000 - 5P_c \) where \( P_c \) is the consumer price (₦ per unit). The supply curve is \( Q_s = 20P_f - 200 \) where \( P_f \) is the price received by the farmer. (a) Find the free‑market equilibrium price and quantity. (b) The government introduces a per‑unit tax \( t \) on the crop, so that \( P_c = P_f + t \). If the tax is set so that the equilibrium quantity falls by 20 % compared with the free‑market quantity, determine the value of \( t \) (to the nearest naira) and the new consumer price \( P_c \) (to one decimal place).
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About This Question
This is Gce Model Questions Vol1 2018 Agricultural Science Question 43. It is one of the objective questions from the 2018 Gce Model Questions Vol1 Agricultural Science examination.
Difficulty level: Hard .
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