2024 Economics WAEC (WASSCE) Theory Past Questions (Paper 2)

Question 1

(a) Identify the:

(i) price per unit of the product before tax;

Solution

Price per unit of the product before tax = $80.

(ii) quantity demanded and supplied before tax;

Solution

Quantity demanded and supplied before tax = 60 units.

(iii) price per unit of the product after tax;

Solution

Price per unit of the product after tax = $100.

(iv) quantity demanded and supplied after tax.

Solution

Quantity demanded and supplied after tax is 54 units.

(b) Determine the:

(i) amount of tax imposed per unit of the product;

Solution

Amount of tax imposed per unit of the product = $100 – $75 = $25

(ii) amount retained per unit by the sellers after tax.

Solution

Amount retained per unit by the sellers after tax = price per unit – amount of tax per unit;

= $100 – $25

= $75

(c) Calculate the percentage of the total tax imposed that is paid by:

(i) buyers per unit

Solution

Percentage of the total tax imposed paid by the buyers per unit:

= \(\frac{Amount\: of \: tax \: paid \: by\:buyers}{Total\:tax\:imposed} \scriptsize \: \times \: 100\)

Amount of tax paid by buyers = $100 – $80 = $20.

= \(\frac{$20}{$25}\scriptsize \: \times \: 100 \\ = \scriptsize 80\%\)

(ii) sellers per unit.

Solution

Percentage of the total tax imposed by the sellers per unit:

= \(\frac{Amount\: of \: tax \: paid \: by\:sellers}{Total\:tax\:imposed} \scriptsize \: \times \: 100\)

Amount of tax paid by the sellers = $80 – $75 = $5

= \(\frac{$5}{$25}\scriptsize \: \times \: 100 \\ = \scriptsize 20\%\)