Waec Model Questions Vol1 2025 Economics Question 47

Practice objective / multiple choice question 47 from the 2025 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2025 Economics Objective / Multiple Choice Medium Difficulty
Question 47 WAEC_MODEL_QUESTIONS_VOL1 • 2025 • ECONOMICS • objective

A per‑unit tax of ₦10 is imposed on a good. The price elasticity of demand is -0.5 and the price elasticity of supply is 1.0 (both measured at the pre‑tax equilibrium). Assuming linear curves, what proportion of the tax burden is borne by consumers and how much tax (in naira) do they pay per unit?

Answer Options

A. Consumers bear ₦7.50 per unit (≈75% of the tax)
B. Consumers bear ₦10.00 per unit (≈100% of the tax)
Correct Answer C. Consumers bear ₦6.67 per unit (≈66.7% of the tax)
D. Consumers bear ₦5.00 per unit (≈50% of the tax)
Correct Answer
C
Correct Option:
Consumers bear ₦6.67 per unit (≈66.7% of the tax)

About This Question

This is Waec Model Questions Vol1 2025 Economics Question 47. It is one of the objective questions from the 2025 Waec Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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