Economics Practice Test – Theory of Price Determination (Questions with Answers and Explanations)

Hello and Welcome to Economics Practice Test - Theory of Price Determination

1. You are to attempt 5 random objectives questions ONLY.
2. Supply Your Full Name and Location in the text box below and begin immediately.
3. You can attempt as many times as possible

The graph below is the market demand and supply schedule for yam

What is the equilibrium price?

A. N10      B. N15      C. N20      D. N25

At a co-efficient of price elasticity of supply of 0.5, supply is _____ (WASSCE 2009)

A. perfectly inelastic      B. inelastic      C. perfectly elastic      D. elastic

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 ______ (WASSCE 2009)

A. 2 Naira      B. 4 Naira      C. 6 Naira      D. 20 Naira.

The demand for beans in bags is given by the function Q - 36 + 0.4P = 0 Where P is price in Naira and Q is quantity, find Q when P = 20 Naira. (WASSCE 2007)

A. 12 bags      B. 24 bags      C. 28 bags      D. 30 bags.

When a change in price does not affect the quantity demanded of a commodity, the price elasticity of demand is _______ (WASSCE 2004)

A. fairly inelastic      B. infinitely inelastic      C. perfectly inelastic      D. unitary elastic.

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