Neco Model Questions Vol1 2018 Economics Question 17
Practice objective / multiple choice question 17 from the 2018 Neco Model Questions Vol1 Economics examination.
A city imposes a per‑ride tax of \(\text{₦}50\) on bus rides. The demand for bus rides per day is given by \(Q_d = 5000 - 20P\), where \(P\) is the price paid by passengers (including the tax). Bus operators receive the price net of tax, so the supply function (before tax) is \(Q_s = 30(P - 50)\). Determine the equilibrium price paid by passengers, the equilibrium quantity of rides per day, and the total tax revenue collected per day.
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About This Question
This is Neco Model Questions Vol1 2018 Economics Question 17. It is one of the objective questions from the 2018 Neco Model Questions Vol1 Economics examination.
Difficulty level: Hard .
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