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

Question 36:

• JAMB 1987

Given an original price of N3.50 per kilogram of rice and a change in price of 1.40, and given the quantity purchase at the old price as 10kg and a change in the quality as 5kg after the price change, the elasticity is equal to?

A. 10.20
B. 3.57
C. 1.25
D. 0.80

Question 37:

• JAMB 1988

Which of the following changes in equilibrium price and quantity is as a result of an upward shift in the market demand for a commodity?

A. Both the price and the quantity fall
B. The price rise and the quantity falls
C. The price falls and the quantity rises
D. Both the price and the quantity rise

Question 38:

• JAMB 1988

Price leadership is?

A. A form of tacit collusion
B. Used to explain price rigidity
C. Illegal in nigeria
D. A form of overt collusion

Question 39:

• JAMB 1988

If in this demand-supply diagram, the quantity supplied is OQ, then

A. Price will be OP
B. There will be excess demand of RT
C. Price will be ON
D. Price will tend to rise

Question 40:

• JAMB 1988

The demand and supply equations for a commodity are given respectively as D = 20 - 1/2P; S = 8 + 1/4P. Recalling that at equilibrium, D = S, the equilibrium (P) and quantity (Q) can be obtained as

A. P = 12, Q = 16
B. P = 15, Q = 10
C. P = 12, Q = 14
D. P = 16, Q = 12