This question was avoided by most of the candidates, even those who attempted it performed woefully. In 9(a –b), most of the candidates could not plot the demand and supply curves for eggs using the schedule provided, determine the equilibrium price and quantity of eggs from the graph. More so, most of them could not determine the excess demand for eggs and excess supply of eggs as required in 9(c-d). They could not also suggest the way by which a farmer can take advantage of the relationship between demand and supply to attain high profit as required in 9(e).
The expected answers include:
Demand and supply curves for eggs
(b) Determination of equilibrium price and quantity of eggs
Equilibrium price = N 25
Equilibrium quantity = 70 crates
(c) Determination of the excess demand for eggs at a price of N 10 per crate
Excess demand = Quantity demanded – Quantity supplied
130 crates - 15 crates
= 115 crates
(d) Determination of excess supply of eggs at a price of N 35 per crate
Excess supply = Quantity supplied – Quantity demanded
160 crates - 20 crates
= 140 crates
(e) Way by which a farmer can take advantage of the relationship between
demand and supply to attain high profit
The farmer must harvest and sell his produce early before other farmers to avoid low prices at harvest time when supply is high and demand is low
The farmer could store the produce at harvest time to sell later when demand and price have risen
- Carbohydrates
- Production of energy
- Can be converted and stored as fat
- Help in milk production |
