Neco Model Questions Vol1 2025 Economics Question 4
Practice objective / multiple choice question 4 from the 2025 Neco Model Questions Vol1 Economics examination.
The wheat market is described by the supply function \( Q_{s}=20P-100 \) and the demand function \( Q_{d}=500-10P \), where quantities are in tonnes and price \(P\) is in Naira per tonne.\n\nThe government introduces a price floor of ₦30 per tonne and, for every tonne produced above the equilibrium quantity, a per‑unit subsidy of ₦5 is paid to producers.\n\n(a) Find the equilibrium price and quantity without any intervention.\n\n(b) Determine the quantity supplied after the price floor is imposed.\n\n(c) Calculate the total subsidy paid by the government.\n\n(d) Compute the dead‑weight loss caused by the price floor together with the subsidy.
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This is Neco Model Questions Vol1 2025 Economics Question 4. It is one of the objective questions from the 2025 Neco Model Questions Vol1 Economics examination.
Difficulty level: Hard .
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