Neco 2023 Economics Question 23

Practice objective / multiple choice question 23 from the 2023 Neco Economics examination.

Neco 2023 Economics Objective / Multiple Choice Medium Difficulty
Question 23 NECO • 2023 • ECONOMICS • objective

Government imposes a specific tax of ₦50 per unit on a good. The market demand is \(Q_{d}=800-4P_{c}\) where \(P_{c}\) is the price paid by consumers, and the supply is \(Q_{s}=-200+3P_{p}\) where \(P_{p}\) is the price received by producers before tax. Determine the consumer price, producer price, equilibrium quantity, the tax revenue, and the dead‑weight loss (rounded to the nearest naira).

Answer Options

A. Consumer price ≈ ₦166.67, producer price ≈ ₦116.67, quantity ≈ 150 units, tax revenue ≈ ₦7,500, dead‑weight loss ≈ ₦2,500
Correct Answer B. Consumer price ≈ ₦164.29, producer price ≈ ₦114.29, quantity ≈ 143 units, tax revenue ≈ ₦7,143, dead‑weight loss ≈ ₦2,143
C. Consumer price ≈ ₦160.00, producer price ≈ ₦110.00, quantity ≈ 140 units, tax revenue ≈ ₦7,000, dead‑weight loss ≈ ₦2,000
D. Consumer price ≈ ₦170.00, producer price ≈ ₦120.00, quantity ≈ 130 units, tax revenue ≈ ₦6,500, dead‑weight loss ≈ ₦1,800
Correct Answer
B
Correct Option:
Consumer price ≈ ₦164.29, producer price ≈ ₦114.29, quantity ≈ 143 units, tax revenue ≈ ₦7,143, dead‑weight loss ≈ ₦2,143

About This Question

This is Neco 2023 Economics Question 23. It is one of the objective questions from the 2023 Neco Economics examination.

Difficulty level: Medium .

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