The Theory of Price Determination

Contents & notes: what this topic covers

Under The Theory of Price Determination, the JAMB Economics syllabus expects you to study:

• 7. The Theory of Price Determination a. The concepts of market and price b. Functions of the price system c. i. Equilibrium price and quantity in product and factor markets iii. Price legislation and its effects ( d. The effects of changes in supply and demand on equilibrium price and ( quantity.
• e. Simple linear equation of demand and supply (

Study notes & guidance

Study The Theory of Price Determination using a recommended Economics textbook that follows the JAMB syllabus. Work through the contents listed above one by one, make brief notes in your own words, and then practise as many questions on this topic as you can — in Economics, understanding and steady practice matter far more than memorising. Use the objectives below as a checklist: if you can do each one confidently, you have mastered this topic.

Objectives — candidates should be able to

After studying The Theory of Price Determination, you should be able to:

1. (i) explain the concepts of market and price; (ii) examine the functions of the price system; (iii) evaluate the effects of government interference with the price system;
2. Differentiate between minimum and maximum price legislation;
3. Interpret the effects of changes in supply and demand on equilibrium price and quantity.
4. Determine the equilibrium value of price and quantity

These objectives are from the official JAMB syllabus. Use them as a checklist — if you can do each one confidently, you have mastered this topic.

Source: official JAMB UTME Economics syllabus (IBASS, jamb.gov.ng). Reproduced for study use. Last checked: 17 Sept 2026. Always confirm the current syllabus on the official portal.