JAMB and WAEC Economics questions: Theory of price determination

30 questions with answers and explanations. Tap an option to check yourself.

1. Question 21· Theory of price determination· WAEC

   An increase in demand with supply unchanged leads to

   • Ahigher price and higher quantity
   • Blower price
   • Clower quantity
   • Dno change

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   Explanation and discussion

2. Question 22· Theory of price determination· JAMB

   A tax on a good shifts its supply curve

   • Adownward to the right
   • Bupward to the left
   • Cnot at all
   • Dvertically down

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   Explanation and discussion

3. Question 23· Theory of price determination· JAMB

   The equilibrium price of a commodity is the price at which

   • Ademand is greatest
   • Bthe government fixes the price
   • Cproducers make the most profit
   • Dquantity demanded equals quantity supplied

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4. Question 24· Theory of price determination· JAMB

   Hoarding of goods by traders usually leads to

   • Aa surplus in the market
   • Blower prices
   • Cartificial scarcity and higher prices
   • Dmore competition

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   Explanation and discussion

5. Question 25· Theory of price determination· WAEC

   Given Qd = 60 − 2P and Qs = 3P − 15, find the equilibrium price.

   • A15
   • B30
   • C25
   • D9

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   Explanation and discussion

6. Question 26· Theory of price determination· JAMB

   If both demand and supply increase by the same amount, equilibrium

   • Aprice falls and quantity falls
   • Bprice rises and quantity falls
   • Cquantity rises and price is unchanged
   • Dboth fall

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7. Question 27· Theory of price determination· WAEC

   When government fixes a maximum price below the equilibrium price, the likely result is

   • Aa surplus
   • Ban increase in supply
   • Ca fall in demand
   • Da shortage and black markets

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   Explanation and discussion

8. Question 28· Theory of price determination· JAMB

   If supply falls while demand stays the same, the equilibrium

   • Aprice rises and quantity falls
   • Bprice falls and quantity rises
   • Cprice and quantity both rise
   • Dprice and quantity both fall

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9. Question 29· Theory of price determination· JAMB

   Using Qd = 100 − 4P and Qs = 6P − 20, find the equilibrium quantity.

   • A60
   • B48
   • C40
   • D52

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10. Question 30· Theory of price determination· JAMB

    If demand for a good increases while supply is unchanged, the equilibrium price will

    • Afall
    • Brise
    • Cstay the same
    • Dbecome zero

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    Explanation and discussion