Neco 2021 Economics Question 44

Practice objective / multiple choice question 44 from the 2021 Neco Economics examination.

Neco 2021 Economics Objective / Multiple Choice Medium Difficulty
Question 44 NECO • 2021 • ECONOMICS • objective

In a closed economy the market for a certain good is described by demand \( Q_d = 200 - 4P \) and supply \( Q_s = 20 + 2P \), where \(P\) is the price in naira and \(Q\) is quantity. The government imposes a specific tax of ₦10 per unit on sellers. (a) Find the price paid by buyers and the price received by sellers after the tax. (b) Compute the tax revenue collected. (c) Calculate the dead‑weight loss resulting from the tax.

Answer Options

A. (a) Buyers pay ₦31.25, sellers receive ₦21.25; (b) tax revenue ₦625.00; (c) dead‑weight loss ₦62.50
B. (a) Buyers pay ₦30.00, sellers receive ₦20.00; (b) tax revenue ₦600.00; (c) dead‑weight loss ₦50.00
Correct Answer C. (a) Buyers pay ₦33.33, sellers receive ₦23.33; (b) tax revenue ₦666.67; (c) dead‑weight loss ₦66.67
D. (a) Buyers pay ₦35.00, sellers receive ₦25.00; (b) tax revenue ₦700.00; (c) dead‑weight loss ₦75.00
Correct Answer
C
Correct Option:
(a) Buyers pay ₦33.33, sellers receive ₦23.33; (b) tax revenue ₦666.67; (c) dead‑weight loss ₦66.67

About This Question

This is Neco 2021 Economics Question 44. It is one of the objective questions from the 2021 Neco Economics examination.

Difficulty level: Medium .

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