Gce Model Questions Vol1 2022 Economics Question 20

Practice objective / multiple choice question 20 from the 2022 Gce Model Questions Vol1 Economics examination.

Gce Model Questions Vol1 2022 Economics Objective / Multiple Choice Medium Difficulty
Question 20 GCE_MODEL_QUESTIONS_VOL1 • 2022 • ECONOMICS • objective

Supply in a market is given by \(P = 20 + Q\) and demand by \(P = 100 - 2Q\). The government imposes a specific tax of £15 per unit on sellers. Determine the new equilibrium quantity, the price paid by consumers, the price received by producers, the total tax revenue, and the dead‑weight loss caused by the tax.

Answer Options

Correct Answer A. Quantity = 21.67 units; Consumer price = £56.67; Producer price = £41.67; Tax revenue = £325; Dead‑weight loss = £37.5
B. Quantity = 22.50 units; Consumer price = £58.00; Producer price = £43.00; Tax revenue = £340; Dead‑weight loss = £45.0
C. Quantity = 19.00 units; Consumer price = £54.00; Producer price = £39.00; Tax revenue = £285; Dead‑weight loss = £25.0
D. Quantity = 20.00 units; Consumer price = £55.00; Producer price = £40.00; Tax revenue = £300; Dead‑weight loss = £30.0
Correct Answer
A
Correct Option:
Quantity = 21.67 units; Consumer price = £56.67; Producer price = £41.67; Tax revenue = £325; Dead‑weight loss = £37.5

About This Question

This is Gce Model Questions Vol1 2022 Economics Question 20. It is one of the objective questions from the 2022 Gce Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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