BAM 114 Theory Questions: Determining Market Equilibrium: A Step-by-Step Solution to Demand and Supply Functions

100 Level Department of Arts and Social Sciences exam questions and detailed answers. Download the answers in document format. Correct, detailed, and straightforward answers.

Questions:

• Supposing you are given demand and supply functions as:
  Qd = 40 – 6p
  Qs = 10 + 4p

(i) Determine equilibrium price and quantity when prices are: ₦2, ₦3, ₦4, ₦5, and ₦6.
(ii) Use the answer in (i) above to prepare a demand and supply schedule.
(iii) Use the schedule to draw demand and supply curves, and indicate the point of equilibrium.

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