Neco 2022 Economics Question 34

Practice objective / multiple choice question 34 from the 2022 Neco Economics examination.

Neco 2022 Economics Objective / Multiple Choice Medium Difficulty
Question 34 NECO • 2022 • ECONOMICS • objective

The world price of a good is $8 per unit. The government imposes a specific tariff of $3 per unit. Domestic demand is \(Q_d = 800 - 30P\) and domestic supply is \(Q_s = 20P - 100\), where \(P\) is the price inclusive of the tariff. Calculate (a) the domestic price after the tariff, (b) the quantities demanded and supplied at that price, (c) the tariff revenue, and (d) the dead‑weight loss caused by the tariff.

Answer Options

A. Price = $11, Qd = 470, Qs = 120, Tariff revenue = $900, Dead‑weight loss = $225
B. Price = $10, Qd = 500, Qs = 100, Tariff revenue = $1,200, Dead‑weight loss = $300
C. Price = $11, Qd = 440, Qs = 140, Tariff revenue = $1,050, Dead‑weight loss = $180
Correct Answer D. Price = $11, Qd = 470, Qs = 120, Tariff revenue = $1,050, Dead‑weight loss = $225
Correct Answer
D
Correct Option:
Price = $11, Qd = 470, Qs = 120, Tariff revenue = $1,050, Dead‑weight loss = $225

About This Question

This is Neco 2022 Economics Question 34. It is one of the objective questions from the 2022 Neco Economics examination.

Difficulty level: Medium .

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