Neco 2021 Economics Question 49

Practice objective / multiple choice question 49 from the 2021 Neco Economics examination.

Neco 2021 Economics Objective / Multiple Choice Hard Difficulty
Question 49 NECO • 2021 • ECONOMICS • objective

The market for agricultural fertilizer is described by the demand function \(Q_{d}=500 - 2P\) and the supply function \(Q_{s}=3P - 150\), where \(P\) is the price per unit in Naira and \(Q\) is quantity. The government imposes a specific tax of \(t = 20\) Naira per unit on producers. Determine (a) the price paid by consumers, (b) the price received by producers, (c) the total tax revenue, and (d) the dead‑weight loss resulting from the tax.

Answer Options

A. Consumer price = 138 Naira; Producer price = 118 Naira; Tax revenue = 4,200 Naira; Dead‑weight loss = 200 Naira
B. Consumer price = 150 Naira; Producer price = 130 Naira; Tax revenue = 4,800 Naira; Dead‑weight loss = 300 Naira
Correct Answer C. Consumer price = 142 Naira; Producer price = 122 Naira; Tax revenue = 4,320 Naira; Dead‑weight loss = 240 Naira
D. Consumer price = 140 Naira; Producer price = 120 Naira; Tax revenue = 4,000 Naira; Dead‑weight loss = 220 Naira
Correct Answer
C
Correct Option:
Consumer price = 142 Naira; Producer price = 122 Naira; Tax revenue = 4,320 Naira; Dead‑weight loss = 240 Naira

About This Question

This is Neco 2021 Economics Question 49. It is one of the objective questions from the 2021 Neco Economics examination.

Difficulty level: Hard .

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