Neco 2022 Economics Question 8

Practice objective / multiple choice question 8 from the 2022 Neco Economics examination.

Neco 2022 Economics Objective / Multiple Choice Medium Difficulty
Question 8 NECO • 2022 • ECONOMICS • objective

Country X imports good A. The world price of A is \$5 per unit. Domestic demand is \( Q_d = 300 - 30P \) and domestic supply is \( Q_s = 20P - 10 \). The government imposes a specific tariff of \$1 per unit on imports. Determine (a) the quantity of imports after the tariff, (b) the tariff revenue, and (c) the change in consumer surplus resulting from the tariff.

Answer Options

Correct Answer A. 10 units imported; tariff revenue = $10; consumer surplus loss = $135
B. 8 units imported; tariff revenue = $8; consumer surplus loss = $120
C. 15 units imported; tariff revenue = $15; consumer surplus loss = $200
D. 12 units imported; tariff revenue = $12; consumer surplus loss = $150
Correct Answer
A
Correct Option:
10 units imported; tariff revenue = $10; consumer surplus loss = $135

About This Question

This is Neco 2022 Economics Question 8. It is one of the objective questions from the 2022 Neco Economics examination.

Difficulty level: Medium .

View More Neco 2022 Economics Questions More Neco Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support