WAEC Economics 2016 Question 13

Question 13

Theory of Supply

The supply of rice in tons is given by the function: Qs − 80 − 0.7P = 0. Where Qs = quantity supplied P = price in Dollars ($). Find Qs, when P = $40.

  1. A.108 tons.
  2. B.52 tons.
  3. C.−52 tons.
  4. D.−108 tons.
Show the answer and explanation

Answer: A (108 tons.)

Explanation

Qs = 80 + 0.7 × 40 = 80 + 28 = 108 tons.