Neco Model Questions Vol1 2025 Economics Question 41

Practice objective / multiple choice question 41 from the 2025 Neco Model Questions Vol1 Economics examination.

Neco Model Questions Vol1 2025 Economics Objective / Multiple Choice Easy Difficulty

Question 41 NECO_MODEL_QUESTIONS_VOL1 • 2025 • ECONOMICS • objective

Given the demand equation \(Q_d = 500 - 5P\) and the supply equation \(Q_s = 2P - 20\), where \(Q\) is quantity and \(P\) is price in Naira, determine the equilibrium price and the equilibrium quantity.

Answer Options

A. Equilibrium price = \(\frac{540}{7}\) Naira (≈77.14 Naira); Equilibrium quantity = \(\frac{880}{7}\) units (≈125.71 units)

B. Equilibrium price = \(\frac{500}{7}\) Naira (≈71.43 Naira); Equilibrium quantity = \(\frac{910}{7}\) units (≈130.00 units)

C. Equilibrium price = \(\frac{520}{8}\) Naira (≈65.00 Naira); Equilibrium quantity = \(\frac{900}{8}\) units (≈112.50 units)

Correct Answer D. Equilibrium price = \(\frac{520}{7}\) Naira (≈74.29 Naira); Equilibrium quantity = \(\frac{900}{7}\) units (≈128.57 units)

Correct Answer

Correct Option:

Equilibrium price = \(\frac{520}{7}\) Naira (≈74.29 Naira); Equilibrium quantity = \(\frac{900}{7}\) units (≈128.57 units)

About This Question

This is Neco Model Questions Vol1 2025 Economics Question 41. It is one of the objective questions from the 2025 Neco Model Questions Vol1 Economics examination.

Difficulty level: Easy .

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