Waec Model Questions Vol1 2024 Economics Question 2

Practice essay / theory question 2 from the 2024 Waec Model Questions Vol1 Economics examination. This question covers Demand and Supply .

Waec Model Questions Vol1 2024 Economics Essay / Theory
Topic: Demand and Supply
Question 2 WAEC_MODEL_QUESTIONS_VOL1 • 2024 • ECONOMICS • essay

In a certain region, a severe drought has reduced the harvest of maize, a staple food. The market for maize can be described by the linear demand equation Qd = 8,000 – 20P and the original linear supply equation Qs = 2,000 + 10P, where Q is quantity in tonnes and P is price in Naira per kilogram.

Question Parts

( a )
Determine the original market equilibrium price and quantity. Then, assuming the drought shifts the supply curve leftward by 1,000 tonnes at every price (i.e., the new supply equation becomes Qs' = 1,000 + 10P), calculate the new equilibrium price and quantity.
( b )
Using the equilibrium values obtained in part (a), compute the change in consumer surplus and producer surplus caused by the drought. Show all steps and state the monetary change in Naira.
( c )
Suggest two government policy measures that could alleviate the adverse effects of the drought on consumers. For each measure, explain briefly how it would affect the demand or supply curve and the resulting equilibrium.

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About This Question

This is Waec Model Questions Vol1 2024 Economics Question 2. It is one of the essay questions from the 2024 Waec Model Questions Vol1 Economics examination.

The question covers Demand and Supply .

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