Neco Model Questions Vol1 2025 Economics Question 45

Practice objective / multiple choice question 45 from the 2025 Neco Model Questions Vol1 Economics examination.

Neco Model Questions Vol1 2025 Economics Objective / Multiple Choice Medium Difficulty
Question 45 NECO_MODEL_QUESTIONS_VOL1 • 2025 • ECONOMICS • objective

The market demand for a good is \(P = 100 - 2Q\) and the market supply is \(P = 20 + Q\), where \(P\) is price in Naira and \(Q\) is quantity. The government imposes a specific tax of ₦30 per unit on sellers. Find (i) the price paid by consumers, (ii) the price received by producers, (iii) the equilibrium quantity after the tax, (iv) the total tax revenue, and (v) the dead‑weight loss caused by the tax. Express monetary values to two decimal places.

Answer Options

A. Consumer price = ₦70.00, Producer price = ₦40.00, Quantity = 15.00 units, Tax revenue = ₦450, Dead‑weight loss = ₦120
B. Consumer price = ₦63.33, Producer price = ₦33.33, Quantity = 18.33 units, Tax revenue = ₦550, Dead‑weight loss = ₦180
Correct Answer C. Consumer price = ₦66.67, Producer price = ₦36.67, Quantity = 16.67 units, Tax revenue = ₦500, Dead‑weight loss = ₦150
D. Consumer price = ₦60.00, Producer price = ₦30.00, Quantity = 20.00 units, Tax revenue = ₦600, Dead‑weight loss = ₦200
Correct Answer
C
Correct Option:
Consumer price = ₦66.67, Producer price = ₦36.67, Quantity = 16.67 units, Tax revenue = ₦500, Dead‑weight loss = ₦150

About This Question

This is Neco Model Questions Vol1 2025 Economics Question 45. It is one of the objective questions from the 2025 Neco Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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