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WAEC Economics 2010 Question 9

Question 9

Price Determination

Equilibrium price is the price at which quantity

  1. A.demanded is greater than quantity supplied.
  2. B.supplied is greater than quantity demanded.
  3. C.demanded is equal to quantity supplied.
  4. D.supplied equals quantity produced.
Show the answer and explanation

Answer: C (demanded is equal to quantity supplied.)

Explanation

At equilibrium price there is neither a surplus nor a shortage.