Waec Model Questions Vol1 2018 Economics Question 2

Practice essay / theory question 2 from the 2018 Waec Model Questions Vol1 Economics examination. This question covers Demand Shift, Supply Shift, Equilibrium Analysis, Government Policy .

Waec Model Questions Vol1 2018 Economics Essay / Theory
Topics: Demand Shift Supply Shift Equilibrium Analysis Government Policy
Question 2 WAEC_MODEL_QUESTIONS_VOL1 • 2018 • ECONOMICS • essay

The market for smartphones in Nigeria is described below.

Question Parts

( a )
Explain qualitatively how a rightward shift of the supply curve (due to a technological improvement) and a rightward shift of the demand curve (due to higher consumer income) would each affect the equilibrium price and quantity if they occurred simultaneously.
( b )
If the supply shift alone would lower the equilibrium price by ₦10,000 and increase quantity by 30,000 units, and the demand shift alone would raise the equilibrium price by ₦15,000 and increase quantity by 20,000 units, estimate the likely net change in equilibrium price and quantity after both shifts occur together. Show the reasoning behind your estimate.
( c )
Discuss two possible policy measures the government could adopt to protect consumers from the adverse effects of rapid price changes in the smartphone market, and evaluate their likely effectiveness.

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About This Question

This is Waec Model Questions Vol1 2018 Economics Question 2. It is one of the essay questions from the 2018 Waec Model Questions Vol1 Economics examination.

The question covers Demand Shift, Supply Shift, Equilibrium Analysis, Government Policy .

View More Waec Model Questions Vol1 2018 Economics Questions More Waec Model Questions Vol1 Practice Questions Back to Questions

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