Neco 2020 Economics Question 37
Practice objective / multiple choice question 37 from the 2020 Neco Economics examination.
The market for a certain good is described by the demand equation \(Q_{d}=500-4P_{c}\) and the supply equation \(Q_{s}=-100+6P_{p}\), where \(P_{c}\) is the price paid by consumers and \(P_{p}\) is the price received by producers. The government wishes to raise exactly \(\text{₦}5{,}000\) in revenue by imposing a specific tax \(t\) per unit (so that \(P_{c}=P_{p}+t\)). Determine the value of \(t\) that will achieve this revenue target and compute the dead‑weight loss that results from the tax.
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About This Question
This is Neco 2020 Economics Question 37. It is one of the objective questions from the 2020 Neco Economics examination.
Difficulty level: Medium .
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