Waec Model Questions Vol1 2020 Economics Question 47
Practice objective / multiple choice question 47 from the 2020 Waec Model Questions Vol1 Economics examination.
In a competitive market for cigarettes the demand function (price inclusive of tax) is Q = 120 - 0.5P and the supply function (price received by producers) is Q = 20 + 0.3(P - T), where T is a specific tax per pack. The government wants to raise exactly ₦1,000 in tax revenue and also wants the dead‑weight loss not to exceed ₦200,000. Determine the tax per pack (rounded to the nearest naira) that satisfies both conditions.
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About This Question
This is Waec Model Questions Vol1 2020 Economics Question 47. It is one of the objective questions from the 2020 Waec Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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