Neco 2022 Economics Question 36

Practice objective / multiple choice question 36 from the 2022 Neco Economics examination.

Neco 2022 Economics Objective / Multiple Choice Hard Difficulty
Question 36 NECO • 2022 • ECONOMICS • objective

City X imposes a per‑ticket tax of ₦20 on bus services. The demand for bus tickets (before tax) is given by \( Q_d = 2000 - 50P \) where \(P\) is the price paid by passengers (in naira). The supply of tickets (price received by operators before tax) is \( Q_s = 30P - 300 \). Determine (i) the price paid by passengers after the tax, (ii) the price received by operators after the tax, and (iii) the dead‑weight loss caused by the tax. Express monetary values to two decimal places.

Answer Options

A. Passenger price = ₦36.25; Operator price = ₦15.00; Dead‑weight loss = ₦3,750.00
B. Passenger price = ₦34.25; Operator price = ₦14.25; Dead‑weight loss = ₦3,250.00
Correct Answer C. Passenger price = ₦36.25; Operator price = ₦16.25; Dead‑weight loss = ₦3,750.00
D. Passenger price = ₦38.25; Operator price = ₦18.25; Dead‑weight loss = ₦4,250.00
Correct Answer
C
Correct Option:
Passenger price = ₦36.25; Operator price = ₦16.25; Dead‑weight loss = ₦3,750.00

About This Question

This is Neco 2022 Economics Question 36. It is one of the objective questions from the 2022 Neco Economics examination.

Difficulty level: Hard .

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