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WAEC Economics 2009 Question 10

Question 10

Price Determination

The demand and supply functions of a commodity are given as follows:
Qd = 20 − 2p
Qs = 6p − 12
Where P = price in naira, Qd = Quantity demanded and Qs = Quantity supplied. The equilibrium price is

  1. A.2 Naira
  2. B.4 Naira
  3. C.6 Naira
  4. D.20 Naira.
Show the answer and explanation

Answer: B (4 Naira)

Explanation

At equilibrium 20 − 2p = 6p − 12, so 8p = 32 and p = 4 Naira.