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 Economics Paper 2, Nov/Dec. 2007
 Questions: 1 2 3 4 5 6 7 8 9 10 11 Main
Weakness/Remedies
Strength

Question 1

Given that quantity demanded and supplied of a given commodity are
represented by the following demand and supply functions

Qd = 20 – 3p
Qs = 10 + 2p

(a) Construct the demand and supply schedule for price ranging from \$1 to \$5.

(b) Draw the demand and supply curve

(c) Determine the equilibrium

Quantity demanded and supplied;

Price
(d) At the price of \$5, determine the excess supply.

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Observation

This was a very popular question among candidates. It required that they use demand and supply functions to determine the levels of demand and supply for a given product. They were also required plot graphical illustration of the demand and supply functions.
Candidates who performed creditably were able to give the quantity demanded and supplied of the commodity at each level of price. They were also able to plot the demand and supply curves on a single graph and state the equilibrium quantity demanded and supplied which were 14. The equilibrium price was \$2 and at the price of \$5 the excess supply was 15.