The Theory of Price Determination - Jamb Economics Past Questions and Answers

Question 46:

• JAMB 1994

What is the equilibrium quantity?

A. 50
B. 250
C. 350
D. 450

Question 47:

• JAMB 1994

Above the equilibrium point, a further rise in price tends to

A. Increase demand and restrict supply
B. Restrict demand and decrease supply
C. Increase demand and decrease supply
D. Decrease demand and increase supply

Question 48:

• JAMB 1995

In order to maximize his profit, a businessman who faces a very elastic demand for his product is advised to?

A. Slightly increase the price of his product
B. Slightly reduce the price of his products
C. Leaves his price unchanged
D. Discriminate his prices

Question 49:

• JAMB 1995

The government can influence the price of agriculture products by?

A. Fixing minimum prices when agricultural output is low
B. Fixing maximum prices in years of bumper harvest
C. The use of buffer stock and stabilization funds
D. Paying all farmers producing identical crops a uniform amount of money

Question 50:

• JAMB 1997

Given a market demand curve Q=120-2p and a supply curve Q = 4p, the equilibrium price and quantity respectively are?

A. 20 and 80
B. 30 and 120
C. 40 and 60
D. 60 and 240