Neco 2022 Economics Question 2

Practice essay / theory question 2 from the 2022 Neco Economics examination. This question covers Demand and Supply .

Neco 2022 Economics Essay / Theory

Topic: Demand and Supply

Question 2 NECO • 2022 • ECONOMICS • essay

The market for smartphones in Nigeria for a particular month is summarised in the table below. Price (₦1000) | Quantity Demanded (units) | Quantity Supplied (units) 2 | 1500 | 400 4 | 1200 | 800 6 | 900 | 1200 8 | 600 | 1600 10 | 300 | 2000

Question Parts

( a )

Determine the equilibrium price and quantity using the data in the table. Show the method you use.

( b )

If the government imposes a price ceiling of ₦5,000 per smartphone, explain the likely effect on the market, calculate the resulting shortage, and discuss one possible unintended consequence.

( c )

Suppose a technological improvement reduces production costs, shifting the supply curve rightward so that at each price the quantity supplied increases by 200 units. Using the original demand schedule, calculate the new equilibrium price and quantity.

Detailed Solution & Marking Scheme

Get the step-by-step solution, key points required by examiners and detailed marking guidance through the Edcrib AI Tutor.

Reveal Answer

About This Question

This is Neco 2022 Economics Question 2. It is one of the essay questions from the 2022 Neco Economics examination.

The question covers Demand and Supply .

View More Neco 2022 Economics Questions More Neco Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows

Chat with Support