Neco 2020 Economics Question 29

Practice objective / multiple choice question 29 from the 2020 Neco Economics examination.

Neco 2020 Economics Objective / Multiple Choice Medium Difficulty
Question 29 NECO • 2020 • ECONOMICS • objective

The government imposes a specific tax of \(\text{₦}50\) per unit on a good. The market demand is \( Q_{d}=500-2P \) and the supply (price received by producers) is \( Q_{s}=3P-150 \), where \(P\) is the price in Naira. Determine (i) the price paid by consumers, (ii) the price received by producers after the tax, (iii) the total tax revenue, and (iv) the dead‑weight loss caused by the tax.

Answer Options

A. Consumer price = 150; Producer price = 100; Tax revenue = 8000; Dead‑weight loss = 1200
B. Consumer price = 165; Producer price = 115; Tax revenue = 9450; Dead‑weight loss = 1600
C. Consumer price = 155; Producer price = 105; Tax revenue = 8500; Dead‑weight loss = 1300
Correct Answer D. Consumer price = 160; Producer price = 110; Tax revenue = 9000; Dead‑weight loss = 1500
Correct Answer
D
Correct Option:
Consumer price = 160; Producer price = 110; Tax revenue = 9000; Dead‑weight loss = 1500

About This Question

This is Neco 2020 Economics Question 29. It is one of the objective questions from the 2020 Neco Economics examination.

Difficulty level: Medium .

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