Jamb Economics 1997 Past Questions and Answers

Question 11:

• JAMB 1997

A good is said to be inferior if its demand?

A. Rises as it price rises
B. Falls as it price rises
C. Rises as it price falls
D. Is perfectly inelastic

Question 12:

• JAMB 1997

Given a market demand curve Q=120-2p and a supply curve Q = 4p, the equilibrium price and quantity respectively are?

A. 20 and 80
B. 30 and 120
C. 40 and 60
D. 60 and 240

Question 13:

• JAMB 1997

If a demand curve that intersects a perfectly inelastic supply curve shifts rightward, then?

A. The equilibrium price and quantity will increase
B. Only the price will increase
C. Only the quantity will increase
D. The price will remain constant

Question 14:

• JAMB 1997

The elasticity of demand for a firm's product is 2.
If the firm reduces its price by 20 percent, its sales revenue will increase by?

A. 10 per cent
B. 20 per cent
C. 30 per cent
D. 40 per cent

Question 15:

• JAMB 1997

If the percentage change in the income of the consumers of an industrial product is less than the resulting percentage change in the quantity demanded of the product, then the income elasticity of demand for the product is?

A. Less than one
B. Equal to one
C. Greater than one
D. Equal to zero