Waec Model Questions Vol1 2024 Economics Question 34

Practice objective / multiple choice question 34 from the 2024 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2024 Economics Objective / Multiple Choice Medium Difficulty
Question 34 WAEC_MODEL_QUESTIONS_VOL1 • 2024 • ECONOMICS • objective

A specific tax of ₦20 per unit is imposed on a good. The price elasticity of demand is -0.5 and the price elasticity of supply is 1.0. Before the tax, the equilibrium price was ₦100 and quantity 500 units. Calculate the price paid by consumers, the price received by producers, and the total tax revenue collected after the tax.

Answer Options

A. Consumer price ₦115.00; Producer price ₦95.00; Tax revenue ≈ ₦9,500
Correct Answer B. Consumer price ₦113.33; Producer price ₦93.33; Tax revenue ≈ ₦9,333
C. Consumer price ₦120.00; Producer price ₦100.00; Tax revenue ≈ ₦10,000
D. Consumer price ₦110.00; Producer price ₦90.00; Tax revenue ≈ ₦9,000
Correct Answer
B
Correct Option:
Consumer price ₦113.33; Producer price ₦93.33; Tax revenue ≈ ₦9,333

About This Question

This is Waec Model Questions Vol1 2024 Economics Question 34. It is one of the objective questions from the 2024 Waec Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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