Waec Model Questions Vol1 2023 Economics Question 48

Practice objective / multiple choice question 48 from the 2023 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2023 Economics Objective / Multiple Choice Medium Difficulty
Question 48 WAEC_MODEL_QUESTIONS_VOL1 • 2023 • ECONOMICS • objective

In a perfectly competitive market the demand for a good is Qd = 500 - 2Pc, where Pc is the price paid by consumers. The supply curve (price received by producers) is Qs = -100 + 3Pp. The government imposes a specific tax of ₦20 per unit, payable by producers. Determine: (a) the price paid by consumers after the tax; (b) the price received by producers after the tax; (c) the equilibrium quantity; (d) the total tax revenue collected; (e) the dead‑weight loss caused by the tax.

Answer Options

Correct Answer A. Consumer price ₦132; producer price ₦112; quantity 236 units; tax revenue ₦4,720; dead‑weight loss ₦240
B. Consumer price ₦128; producer price ₦108; quantity 238 units; tax revenue ₦4,560; dead‑weight loss ₦250
C. Consumer price ₦130; producer price ₦110; quantity 240 units; tax revenue ₦4,800; dead‑weight loss ₦260
D. Consumer price ₦135; producer price ₦115; quantity 230 units; tax revenue ₦4,600; dead‑weight loss ₦220
Correct Answer
A
Correct Option:
Consumer price ₦132; producer price ₦112; quantity 236 units; tax revenue ₦4,720; dead‑weight loss ₦240

About This Question

This is Waec Model Questions Vol1 2023 Economics Question 48. It is one of the objective questions from the 2023 Waec Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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