Test Index

JAMB Economics 2015 Paper

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Question : 70

Total: 70

Given that the prices and quantities supplied in litres of petrol is expressed as Qs = 25 + 0.25P. Qs is the quantity supplied and P is the price. Determine the quantity supplied when the price per liter is N30

50litres
32.5litres
30litres
35litres

Solution:

Concept:

The supply function shows how quantity supplied responds to changes in price.

Explanation:

The supply equation is

Q_s = 25 + 0.25P

.

Given price per litre is

P = 30

naira.

Substitute

P = 30

into the equation:

Q_s = 25 + 0.25(30)

Q_s = 25 + 7.5

Q_s = 32.5

litres.

Answer:

32.5

litres (Option B).

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