Jamb Economics 1987 Past Questions and Answers

Question 16:

• JAMB 1987

In the operation of market forces, the market is in equilibrium at the point where?

A. Demand and supply curve intersect in more than one point provided the market is cleared
B. The excess in market can be conveniently stored
C. Excess demand is negative
D. Demand and supply curves intersect

Question 17:

• JAMB 1987

A shift in the demand curve for commodity when the supply curve is vertical will lead to a change in the?

A. Price only
B. Quantity only
C. Quality only
D. Price and quantity

Question 18:

• JAMB 1987

Given an original price of N3.50 per kilogram of rice and a change in price of 1.40, and given the quantity purchase at the old price as 10kg and a change in the quality as 5kg after the price change, the elasticity is equal to?

A. 10.20
B. 3.57
C. 1.25
D. 0.80

Question 19:

• JAMB 1987

For normal goods the income elasticity of demand is?

A. Positive
B. Negative
C. Zero
D. Infinite

Question 20:

• JAMB 1987

If a good is an inferior good, then?

A. It is also necessarily a Giffen good
B. The quality of the goods demanded varies inversely with its price
C. Its income elasticity of demand is negative
D. The poor buy the good only out of habit