Price in N Quantity demanded Quantity supplied
10 50 450
20 150 350
30 250 250
40 350 150
50 450 50

Above the equilibrium point, a further rise in price tends to

  • A increase demand and restrict supply
  • B restrict demand and decrease supply
  • C increase demand and decrease supply
  • D decrease demand and increase supply
jamb 1994economics

The correct answer is C. increase demand and decrease supply

 As the price moves from 30 to 40, quantity demanded tend to increase from 250 units to 350 units while quantity supplied decreases from 250 to 150. So, option C is correct

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