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

Question 21:

• JAMB 1978

In the diagram equilibrium price is:

A. P₂
B. P_o
C. P₁
D. Indeterminate
E. Between P_o and P₁ Diagram P.2

Question 22:

• JAMB 1979

When the price of a commodity is below the equilibrium price the quantity demanded will exceed the quantity supplied. Such a situation is referred to as

A. Elastic supply
B. Joint demand
C. Excess supply
D. Derived demand
E. None of the above

Question 23:

• JAMB 1979

The price mechanism

A. Regulates supply and demand
B. Rations the consumers
C. Rewards the producers
D. Allocates scarce resources
E. Does all of the above

Question 24:

• JAMB 1980

Price control indicate the following

A. Price is fixed at equilibrium level
B. Price is fixed above equilibrium level
C. Price is not fixed but determined by demand and supply
D. Price is fixed below equilibrium level
E. None of the above

Question 25:

• JAMB 1981

An equilibrium price?

A. Keeps excess demand within limits
B. Keeps excess supply within limits
C. Generates the greatest possible demand and supply
D. Generates the greatest possible profits
E. Equates the quantity supplied to be equal to the quantity demanded.