Question 8

(a) What is a specific tax? (2 marks)

(b) Explain with the aid of diagrams, the effects of specific tax on a commodity that has a:
(i) perfectly elastic demand; (6 marks)
(ii) perfectly inelastic demand

(c) State two differences between a direct tax and and an indirect tax. (6 marks)

Theory

Question details

Exam body
WAEC
Subject
Economics
Year
2014
Question no.
#8
Type
Theory

More from this paper

See all Economics 2014 questions