Neco 2024 Economics Question 47

Practice objective / multiple choice question 47 from the 2024 Neco Economics examination.

Neco 2024 Economics Objective / Multiple Choice Easy Difficulty
Question 47 NECO • 2024 • ECONOMICS • objective

The market for a good is described by the demand equation \( P = 100 - 0.5Q \) and the supply equation \( P = 20 + 0.25Q \). (a) Find the equilibrium price and quantity. (b) The government introduces a specific tax of \( \text{₦}10 \) per unit on producers, shifting the supply curve upward by the tax amount. Determine the new equilibrium consumer price, producer price (net of tax), and the total tax revenue collected.

Answer Options

A. Equilibrium: P=150\/3, Q=300\/3; After tax: Pc=170\/3, Pp=140\/3, Tax revenue=3000\/3
B. Equilibrium: P=140\/3, Q=320\/3; After tax: Pc=130\/3, Pp=160\/3, Tax revenue=2800\/3
C. Equilibrium: P=140\/3, Q=320\/3; After tax: Pc=160\/3, Pp=130\/3, Tax revenue=2600\/3
Correct Answer D. Equilibrium: P=140/3, Q=320/3; After tax: Pc=160/3, Pp=130/3, Tax revenue=2800/3
Correct Answer
D
Correct Option:
Equilibrium: P=140/3, Q=320/3; After tax: Pc=160/3, Pp=130/3, Tax revenue=2800/3

About This Question

This is Neco 2024 Economics Question 47. It is one of the objective questions from the 2024 Neco Economics examination.

Difficulty level: Easy .

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