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JAMB Economics 2014 Question 8

Question 8

Price Determination

Given that Qd = 40 − 2P and Qs = 6P + 24, calculate the equilibrium price.

  1. A.₦36
  2. B.₦16
  3. C.₦4
  4. D.₦2.
Show the answer and explanation

Answer: D (₦2.)

Explanation

At equilibrium Qd = Qs: 40 − 2P = 6P + 24, so 8P = 16 and P = ₦2.