Gce Model Questions Vol1 2019 Economics Question 2
Practice objective / multiple choice question 2 from the 2019 Gce Model Questions Vol1 Economics examination.
The market demand for a good is \( Q_{d}=200-4P \) and market supply is \( Q_{s}= -20+2P \), where \(P\) is the price received by producers. The government imposes a specific tax of \(\$5\) per unit on sellers.\n(a) Find the equilibrium price paid by consumers after the tax.\n(b) By how much does the consumer price increase compared with the pre‑tax equilibrium price? Express the increase in dollars.
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This is Gce Model Questions Vol1 2019 Economics Question 2. It is one of the objective questions from the 2019 Gce Model Questions Vol1 Economics examination.
Difficulty level: Easy .
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