Neco Model Questions Vol1 2021 Economics Question 8

Practice objective / multiple choice question 8 from the 2021 Neco Model Questions Vol1 Economics examination.

Neco Model Questions Vol1 2021 Economics Objective / Multiple Choice Medium Difficulty
Question 8 NECO_MODEL_QUESTIONS_VOL1 • 2021 • ECONOMICS • objective

The market for a good is described by the demand equation \( P = 100 - 2Q \) and the supply equation \( P = 20 + Q \). The government wants to raise exactly N240 million in revenue by imposing a specific tax \(t\) per unit. Find the value of \(t\) (rounded to one decimal place) that achieves this revenue target, and compute the resulting dead‑weight loss (rounded to one decimal place).

Answer Options

A. Tax t ≈ 9.5 (per unit); Dead‑weight loss ≈ 15.2
Correct Answer B. Tax t ≈ 10.3 (per unit); Dead‑weight loss ≈ 17.7
C. Tax t ≈ 8.1 (per unit); Dead‑weight loss ≈ 13.9
D. Tax t ≈ 12.0 (per unit); Dead‑weight loss ≈ 20.5
Correct Answer
B
Correct Option:
Tax t ≈ 10.3 (per unit); Dead‑weight loss ≈ 17.7

About This Question

This is Neco Model Questions Vol1 2021 Economics Question 8. It is one of the objective questions from the 2021 Neco Model Questions Vol1 Economics examination.

Difficulty level: Medium .

View More Neco Model Questions Vol1 2021 Economics Questions More Neco Model Questions Vol1 Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support