Neco Model Questions Vol1 2022 Economics Question 18

Practice objective / multiple choice question 18 from the 2022 Neco Model Questions Vol1 Economics examination.

Neco Model Questions Vol1 2022 Economics Objective / Multiple Choice Easy Difficulty
Question 18 NECO_MODEL_QUESTIONS_VOL1 • 2022 • ECONOMICS • objective

The market for a good is described by the demand equation \(Q_d = 500 - 5P\) and the supply equation \(Q_s = 2P\), where \(P\) is the price in Naira and \(Q\) is quantity. The government imposes a specific tax of \(\text{₦}20\) per unit on producers.\n\nDetermine (i) the price paid by consumers, (ii) the price received by producers, and (iii) the total tax revenue collected by the government.

Answer Options

A. Consumer price ≈ ₦70.00, producer price ≈ ₦50.00, tax revenue ≈ ₦2,000.00.
B. Consumer price ≈ ₦80.00, producer price ≈ ₦60.00, tax revenue ≈ ₦2,400.00.
C. Consumer price ≈ ₦75.00, producer price ≈ ₦55.00, tax revenue ≈ ₦2,200.00.
Correct Answer D. Consumer price ≈ ₦77.14, producer price ≈ ₦57.14, tax revenue ≈ ₦2,285.71.
Correct Answer
D
Correct Option:
Consumer price ≈ ₦77.14, producer price ≈ ₦57.14, tax revenue ≈ ₦2,285.71.

About This Question

This is Neco Model Questions Vol1 2022 Economics Question 18. It is one of the objective questions from the 2022 Neco Model Questions Vol1 Economics examination.

Difficulty level: Easy .

View More Neco Model Questions Vol1 2022 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