Use the schedule to answer the follow-ing questions: Price per annum Quantity Demanded Quantity Supplied...
ECONOMICS
WAEC 1995
Use the schedule to answer the follow-ing questions:
| Price per annum | Quantity Demanded | Quantity Supplied per week |
| 5 | 500 | 60 |
| 6 | 400 | 150 |
| 7 | 300 | 300 |
| 8 | 250 | 400 |
| 9 | 150 | 500 |
| 10 | 50 | 600 |
(a) At what price and quantity does the market attain equilibrium and why?
(b) At what prices does the market exhibit excess demand and by how many units?
(c) At what prices does the market exhibit excess supply and by how many units?
(d) At what price will the supplier be willing to sell most? What quantity will he be willing to sell at that
Explanation
(a) Equilibrium price N7
Equilibrium quantity 300 Units
Because at that price quantity demanded is equal to quantity supplied
(b) Excess demand arises at prices N5 and N6
At N5 = 500, 60 = 440 units
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