Neco 2019 Economics Question 49

Practice objective / multiple choice question 49 from the 2019 Neco Economics examination.

Neco 2019 Economics Objective / Multiple Choice Medium Difficulty
Question 49 NECO • 2019 • ECONOMICS • objective

Given the market demand \( Q_{d}=500-5P \) and supply \( Q_{s}=-100+10P \), the government imposes a specific tax of \( \text{₦}20 \) per unit on producers. Compute (i) the price paid by consumers, (ii) the price received by producers, (iii) the equilibrium quantity, (iv) the total tax revenue, and (v) the dead‑weight loss. Express monetary values to two decimal places.

Answer Options

A. Consumer price = 55.00, Producer price = 35.00, Quantity = 240.00, Tax revenue = 4800.00, Dead‑weight loss = 720.00
B. Consumer price = 53.33, Producer price = 30.00, Quantity = 233.33, Tax revenue = 4600.00, Dead‑weight loss = 600.00
C. Consumer price = 50.00, Producer price = 30.00, Quantity = 220.00, Tax revenue = 4400.00, Dead‑weight loss = 600.00
Correct Answer D. Consumer price = 53.33, Producer price = 33.33, Quantity = 233.33, Tax revenue = 4666.67, Dead‑weight loss = 666.67
Correct Answer
D
Correct Option:
Consumer price = 53.33, Producer price = 33.33, Quantity = 233.33, Tax revenue = 4666.67, Dead‑weight loss = 666.67

About This Question

This is Neco 2019 Economics Question 49. It is one of the objective questions from the 2019 Neco Economics examination.

Difficulty level: Medium .

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