WAEC Economics 2017 Theory — Question 6

Question 6 of 23 from the West African Examinations Council (WAEC) Economics 2017 Theory paper, with the correct answer and a full explanation.

2(b)(ii) If the price of apple is fixed at $3.00, what will be the excess demand or excess supply?

Model answer

If price is fixed at $3: Qd=30-3=27 units. Qs=15+2(3)=21 units. Excess demand = Qd-Qs = 27-21 = 6 units.

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