JAMB Economics 1981 Question 42

Question 42

Price Determination

Market for GARRI
Price per tin — Demand per week — Supply per week
N6 — 0 tin — 35 tins
N5 — 5 tines — 25 tins
N4 — 10 tins — 35 tins
N3 — 15 tins — 15 tins
N2 — 20 tins — 5 tins
N1 — 25 tins — 0 tin.
At a price of N5, the excess supply is

  1. A.30 tins per week
  2. B.45 tins per week
  3. C.15 tins per week
  4. D.20 tins per week
  5. E.indeterminate.
Show the answer and explanation

Answer: D (20 tins per week)

Explanation

Excess supply = quantity supplied − quantity demanded = 25 − 5 = 20 tins per week.