Neco Model Questions Vol1 2025 Economics Question 46
Practice objective / multiple choice question 46 from the 2025 Neco Model Questions Vol1 Economics examination.
The market for a good is described by the demand equation \( Q_d = 500 - 2P \) and the supply equation \( Q_s = 100 + 3P \), where \(P\) is the price (in naira) and \(Q\) is quantity. The government imposes a specific tax of \(t\) naira per unit, which is borne by producers (i.e., the supply curve shifts upward by \(t\)). The government wants the tax to raise at least \(\text{₦}3{,}000\) in revenue and also wants the price paid by consumers not to exceed \(\text{₦}90\). What is the minimum tax per unit (in naira, to two decimal places) that satisfies both conditions?
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About This Question
This is Neco Model Questions Vol1 2025 Economics Question 46. It is one of the objective questions from the 2025 Neco Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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