JAMB Economics 2020 Objective — Question 18

Question 18 of 50 from the Joint Admissions and Matriculation Board (JAMB) Economics 2020 Objective paper, with the correct answer and a full explanation.

If the price of a commodity is fixed below equilibrium, this will lead to

A. excess demandCorrect
B. a decrease in price
C. an increase in price
D. excess supply

Explanation

When price is fixed below equilibrium, quantity demanded exceeds quantity supplied, creating excess demand.

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