Gce Model Questions Vol1 2018 Economics Question 32

Practice objective / multiple choice question 32 from the 2018 Gce Model Questions Vol1 Economics examination.

Gce Model Questions Vol1 2018 Economics Objective / Multiple Choice Easy Difficulty
Question 32 GCE_MODEL_QUESTIONS_VOL1 • 2018 • ECONOMICS • objective

In a market the initial demand curve is \(P = 80 - 2Q\) and the supply curve is \(P = 20 + Q\). The government imposes a specific tax of \(\text{₦}10\) per unit on sellers. Determine the new equilibrium quantity, the price paid by buyers and the price received by sellers after the tax.

Answer Options

A. Quantity = \(15\) units; price paid by buyers = \(\text{₦}45\); price received by sellers = \(\text{₦}35\)
B. Quantity = \(20\) units; price paid by buyers = \(\text{₦}50\); price received by sellers = \(\text{₦}40\)
Correct Answer C. Quantity = \(16.67\) units; price paid by buyers = \(\text{₦}46.67\); price received by sellers = \(\text{₦}36.67\)
D. Quantity = \(18\) units; price paid by buyers = \(\text{₦}48\); price received by sellers = \(\text{₦}38\)
Correct Answer
C
Correct Option:
Quantity = \(16.67\) units; price paid by buyers = \(\text{₦}46.67\); price received by sellers = \(\text{₦}36.67\)

About This Question

This is Gce Model Questions Vol1 2018 Economics Question 32. It is one of the objective questions from the 2018 Gce Model Questions Vol1 Economics examination.

Difficulty level: Easy .

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