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JAMB Economics 2009 Objective — Question 15

Question 15 of 50 from the Joint Admissions and Matriculation Board (JAMB) Economics 2009 Objective paper, with the correct answer and a full explanation.

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A decrease in supply without a corresponding change in demand will lead to

  • A. an increase in equilibrium price and a decrease in equilibrium quantityCorrect
  • B. a decrease in equilibrium price and an increase in equilibrium quantity
  • C. a decrease in equilibrium price and equilibrium quantity
  • D. an increase in equilibrium price and quantity

Explanation

There will be an increase in equilibrium price and a decrease in equilibrium quantity as supply shifts left (from S0 to S1), while quantity demanded decreases.

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