PAST QUESTIONS (PRICE SYSTEM)

2019
1a) Price-Demand Model
1b)
How do changes in the following factors affect the demand for a commodity
i. Price
ii. Income
iii. Price of substitute
iv. Advertisement
v. Population
2a) Write short note on the following
iv. Market equilibrium
4a)
Evaluate the concepts of price, income, cross and promotion elasticity of demand and a
highlight on their measurement
4b)
Discuss geometry methods of computing price elasticity of demand

2019/2018
1) Explain clearly what you understand the following
a. The determinant of degree of price elasticity of demand of a product
2) Price-Demand model

2016/2017
1a) Define elasticity of demand and supply
1b) Show graphically the following
i. Perfectly elastic demand
ii. Perfectly inelastic demand
iii. Inelastic demand
iv. Elastic demand
v. Unitary elastic demand
5) Suppose the market supply curve for a commodity in a perfect competitive industry is given
by: QS = 20,000 and the market demand is given by QD = 50,000 – 3000P.
a. Determine the market equilibrium price
b. If the market demand function changes to QD = 50,000 – 3000P, what is the new equilibrium
price.
c. If the market demand function changes to QD = 30,000 – 3000P, what is the new equilibrium
price
d. Show graphically, the market demand curve, the market supply curve and market equilibrium
price and quantity.

2016/2017
1. Explain clearly what you understand by the following
a. Impact of advertisement on the price elasticity of demand of a product
b. Market equilibrium in relation to the foreign exchange market in Nigeria. How does
this affect price and economic stability.
2b) Price-Demand Model

2015/2016 (EXECUTIVE)
1. Imagine that the market demand in a perfect competitive industry is given by
QD = 6000 – 500P and the supply curve is: QS = 3000 – 250P
a. Find the market equilibrium price
b. Find the market demand schedule and market supply schedule at price of #5, #4,
#3,#2 and #1.
c. Show the equilibrium price and quantity from the market demand schedule and
market supply schedule.
SECTION C
5a) What are the major determinants of price elasticity of demand
5b) How would a price increase affect the total revenue of a firm if the demand for its product is:
i. Price elastic
ii. Price inelastic. Explain with the aid of diagram