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Friday, 14 August 2026
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Economics Past Questions and Answers

Topic: The Theory of Price Determination

Jamb Economics Questions - The Theory of Price Determination

Question 21:
In the diagram equilibrium price is:
  • A P<sub style='font-size: smaller;'>2</sub>
  • B P<sub style='font-size: smaller;'>o</sub>
  • C P<sub style='font-size: smaller;'>1</sub>
  • D Indeterminate
  • E Between P<sub style='font-size: smaller;'>o</sub> and P<sub style='font-size: smaller;'>1</sub> Diagram P.2
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Question 22:
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
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Question 23:
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
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Question 24:
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
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Question 25:
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.
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