Gce Model Questions Vol1 2023 Economics Question 18
Practice objective / multiple choice question 18 from the 2023 Gce Model Questions Vol1 Economics examination.
The market for a good is described by the linear demand \( P = 100 - 0.5Q \) and supply \( P = 20 + 0.25Q \). The government imposes a specific tax of \(£10\) per unit on sellers.\n\n(a) Find the new equilibrium quantity, the price paid by consumers and the price received by producers after the tax.\n(b) Compute the total tax revenue.\n(c) Determine the dead‑weight loss caused by the tax, rounding your answer to two decimal places.
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About This Question
This is Gce Model Questions Vol1 2023 Economics Question 18. It is one of the objective questions from the 2023 Gce Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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