Neco Model Questions Vol1 2019 Economics Question 41
Practice objective / multiple choice question 41 from the 2019 Neco Model Questions Vol1 Economics examination.
The market for a good is described by the linear demand curve \(P = 100 - 2Q\) and the linear supply curve \(P = 20 + Q\). The government imposes a specific tax of ₦10 per unit sold.\n\n(a) Find the equilibrium quantity and price before the tax.\n(b) Find the equilibrium quantity, consumer price, producer price and the tax revenue after the tax.\n(c) The government wants to raise the same amount of revenue by changing the per‑unit tax to a new rate \(t\) (with the same demand and supply curves). What should be the new tax rate \(t\) (in ₦ per unit) that will generate the same revenue?
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About This Question
This is Neco Model Questions Vol1 2019 Economics Question 41. It is one of the objective questions from the 2019 Neco Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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