Neco 2024 Economics Question 40

Practice objective / multiple choice question 40 from the 2024 Neco Economics examination.

Neco 2024 Economics Objective / Multiple Choice Medium Difficulty
Question 40 NECO • 2024 • ECONOMICS • objective

The market demand for a good is \(Q_{d}=1200-4P\) and the supply (price received by producers) is \(Q_{s}=-200+6P\). The government imposes a specific tax of \(\text{\u20A6}50\) per unit. Consumers pay price \(P_{c}\) and producers receive \(P_{p}=P_{c}-50\). Find the new equilibrium consumer price, producer price and the proportion of the tax borne by consumers and by producers (as percentages of the tax).

Answer Options

A. Consumer price = \\u20A6155, Producer price = \\u20A6165, Consumer bears 55\\%, Producer bears 45\\%
B. Consumer price = \\u20A6180, Producer price = \\u20A6100, Consumer bears 70\\%, Producer bears 30\\%
Correct Answer C. Consumer price = \u20A6170, Producer price = \u20A6120, Consumer bears 60\%, Producer bears 40\%
D. Consumer price = \\u20A6160, Producer price = \\u20A6140, Consumer bears 50\\%, Producer bears 50\\%
Correct Answer
C
Correct Option:
Consumer price = \u20A6170, Producer price = \u20A6120, Consumer bears 60\%, Producer bears 40\%

About This Question

This is Neco 2024 Economics Question 40. It is one of the objective questions from the 2024 Neco Economics examination.

Difficulty level: Medium .

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