Neco Model Questions Vol1 2023 Economics Question 43

Practice objective / multiple choice question 43 from the 2023 Neco Model Questions Vol1 Economics examination.

Neco Model Questions Vol1 2023 Economics Objective / Multiple Choice Easy Difficulty
Question 43 NECO_MODEL_QUESTIONS_VOL1 • 2023 • ECONOMICS • objective

The demand for a product is \(Q_d = 120 - 2P\) and the supply is \(Q_s = 20 + 3P\), where \(P\) is the price in Naira per unit and \(Q\) is quantity in units. The government imposes a specific tax of ₦10 per unit on producers. Find the new equilibrium consumer price, producer price, and quantity.

Answer Options

A. Consumer price = ₦30, Producer price = ₦20, Quantity = 60 units
Correct Answer B. Consumer price = ₦26, Producer price = ₦16, Quantity = 68 units
C. Consumer price = ₦28, Producer price = ₦18, Quantity = 64 units
D. Consumer price = ₦24, Producer price = ₦14, Quantity = 72 units
Correct Answer
B
Correct Option:
Consumer price = ₦26, Producer price = ₦16, Quantity = 68 units

About This Question

This is Neco Model Questions Vol1 2023 Economics Question 43. It is one of the objective questions from the 2023 Neco Model Questions Vol1 Economics examination.

Difficulty level: Easy .

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