eZine · Nigerian exams
The theory of price determination
JAMB Economics topic guide with 2 practice questions.
What to revise
- the concepts of market and price
- functions of the price system
- equilibrium price and quantity in product and factor markets
- price legislation and its effects
- the effects of changes in supply and demand on equilibrium price and quantity
- simple linear equation of demand and supply
You should be able to
- explain the concepts of market and price
- examine the functions of the price system
- evaluate the effects of government interference with the price system
- differentiate between minimum and maximum price legislation
- interpret the effects of changes in supply and demand on equilibrium price and quantity
- determine the equilibrium value of price and quantity
From JAMB's Economics syllabus official. Full syllabus →
eZine's published bank has 12 questions on this topic (counted 29 October 2026).
Practice questions
Question 1 · The theory of price determination
Strict rent control that keeps rents in Lagos well below market level is MOST LIKELY to result in the long run in
Show answer and explanation
Answer: A. fewer houses being built for rent
A ceiling cuts returns to landlords, so new rental housing falls and shortages grow. A surplus arises from a price floor; landlords have less, not more, incentive to build; the law prevents legal rents above the ceiling.
eZine practice question (original, teacher-reviewed)
Question 2 · The theory of price determination
If demand for yam increases while supply remains unchanged, equilibrium price and quantity will
Show answer and explanation
Answer: C. both rise
A rightward demand shift along a fixed upward-sloping supply curve raises both price and quantity. Both fall when demand falls; price up/quantity down happens with a fall in supply; price down/quantity up with a rise in supply.
eZine practice question (original, teacher-reviewed)
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