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

Question 6:

• JAMB 2017

One of the functions of the price system is that it

A. Encourages high volume of production
B. Dictates what the citizens will consume
C. Discourages the consumption of harmful goods
D. Regulates production and consumption

Question 7:

• JAMB 2017

Given that Qd = 10 - 2p while Qs = 5 x 3P, if P = N 1 determine the equilibrium quantity

A. 7
B. 6
C. 5
D. 8

Question 8:

• JAMB 2017

Excess supply over demand will place a price advantage on _____

A. Government
B. Foreign investors
C. Suppliers
D. Consumers

Question 9:

• JAMB 2016

From the graph above P2 in price control situation is referred

A. Minimum price
B. Shut-down price
C. Maximum price
D. Mark-up price

Question 10:

• JAMB 2016

From the graph above, fixing maximum price of garri below equilibrium prices at P1 will

A. Encourage the production of garri
B. Create an excess supply of garri
C. Increase the consumption of garri
D. Decrease the consumption of garri