Neco 2018 Economics Question 3

Practice objective / multiple choice question 3 from the 2018 Neco Economics examination.

Neco 2018 Economics Objective / Multiple Choice Medium Difficulty
Question 3 NECO • 2018 • ECONOMICS • objective

The market for a good is described by demand \( Q_{d}=200-3P \) and supply \( Q_{s}=2P-20 \). The government introduces a specific tax of \(15\) per unit on the good. Find 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

A. Consumers pay 55 per unit, producers receive 40 per unit, tax revenue = 825, dead‑weight loss = 150
Correct Answer B. Consumers pay 50 per unit, producers receive 35 per unit, tax revenue = 750, dead‑weight loss = 135
C. Consumers pay 50 per unit, producers receive 30 per unit, tax revenue = 600, dead‑weight loss = 100
D. Consumers pay 45 per unit, producers receive 30 per unit, tax revenue = 675, dead‑weight loss = 120
Correct Answer
B
Correct Option:
Consumers pay 50 per unit, producers receive 35 per unit, tax revenue = 750, dead‑weight loss = 135

About This Question

This is Neco 2018 Economics Question 3. It is one of the objective questions from the 2018 Neco Economics examination.

Difficulty level: Medium .

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