Neco 2021 Economics Question 2

Practice essay / theory question 2 from the 2021 Neco Economics examination. This question covers Demand and Supply .

Neco 2021 Economics Essay / Theory

Topic: Demand and Supply

Question 2 NECO • 2021 • ECONOMICS • essay

The table below shows the weekly quantity demanded and quantity supplied of a locally produced mango juice at different price levels in a town market. Price per litre (₦) | Quantity Demanded (litres) | Quantity Supplied (litres) --- | --- | --- 40 | 120 | 40 50 | 100 | 60 60 | 80 | 80 70 | 60 | 100 80 | 40 | 120

Question Parts

( a )

Using the table, determine the equilibrium price and quantity. Show how you arrived at your answer.

( b )

Suppose the government imposes a per‑unit tax of ₦10 on producers. Assuming the tax does not change the shape of the supply curve, calculate the new quantity supplied at each price level (i.e., effective price received by producers is price − tax). Identify the new equilibrium price (price paid by consumers) and quantity.

( c )

Calculate the dead‑weight loss (DWL) resulting from the tax, assuming linear demand and supply between the relevant points. Use the formula for the area of a triangle: ½ × base × height. Show your steps.

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About This Question

This is Neco 2021 Economics Question 2. It is one of the essay questions from the 2021 Neco Economics examination.

The question covers Demand and Supply .

View More Neco 2021 Economics Questions More Neco Practice Questions Back to Questions

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