Test Index

JAMB Economics 2014 Paper

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Question : 7

Total: 49

Given the supply function P =

\frac{1}{4}

(Qs+10) when P = N10, what is Qs?

20
1.5
5.0
30

Solution:

Concept:

The supply function expresses quantity supplied (

Q_s

) as a function of price (

P

), so substitute the given price and solve for

Q_s

.

Explanation:

Given

P = \frac{1}{4}(Q_s + 10)

and

P = \mathrm{N}10

.

Substitute

P = 10

:

10 = \frac{1}{4}(Q_s + 10)

Multiply both sides by 4:

40 = Q_s + 10

Subtract 10 from both sides:

Q_s = 30

Answer:

D.

30

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