Question 42
Price DeterminationMarket 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
- A.30 tins per week
- B.45 tins per week
- C.15 tins per week
- D.20 tins per week
- 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.