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JAMB Economics 2001 Question 24

Question 24

Price Determination

The table below shows a demand schedule for eggs.
Price per dozen (₦) | Qty. demanded (in dozen) | Qty. supplied (in dozen)
100 | 410 | 570
90 | 450 | 530
80 | 490 | 490
70 | 530 | 450
60 | 570 | 410
What is the equilibrium price?

  1. A.₦100
  2. B.₦110
  3. C.₦60
  4. D.₦80
Show the answer and explanation

Answer: D (₦80)

Explanation

Equilibrium is where quantity demanded equals quantity supplied. At ₦80 both are 490 dozen.