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JAMB Economics 2003 Question 10

Question 10

Price Determination

If there is an increase in demand without a corresponding increase in supply, there will be a

  1. A.rise in price
  2. B.shift in demand curve to the left
  3. C.fall in price
  4. D.shift in supply curve to the right
Show the answer and explanation

Answer: A (rise in price)

Explanation

More buyers chasing the same supply creates a shortage, so the price rises.