The Theory of Demand - Jamb Economics Past Questions and Answers

Question 46:

• JAMB 1982

If income rises from N200.00 to N250.00 and the amount spent on good X falls from N30.00 to N28.00, then good X is?

A. An income elastic good
B. A normal good
C. An inferior good
D. Demand elastic
E. Supply elastic

Question 47:

• JAMB 1983

A downward sloping demand curve intersect a fixed supply curve, A shift of this demand curve to the right implies that?

A. Both price and quantity will increased
B. Only price increases
C. Only quantity increases
D. The price remains constant
E. The price falls

Question 48:

• JAMB 1983

A Nigerian household's demand curve for semovita is downward because?

A. The demand for semovita is high
B. The loal markets are flooded with semovita
C. It is produced in Nigeria
D. Every household can afford to buy semovita
E. Higher prices attract lower quantities while lower prices attract larger quantities

Question 49:

• JAMB 1983

The meaning of ‘wage-price spiral’ is?

A. Demand pull and cost push inflation pulling each other in different director
B. Demand pull and cost push inflation intensifying each other
C. Both of them bringing about a reduction in the price level
D. That demand pull and cost push inflation increases employment
E. That wages and prices are rising at a proportional rate

Question 50:

• JAMB 1983

When demand is elastic, it means that consumers

A. React more proportionately to price change
B. Are not sensitive to price changed
C. Will stop buying when price increases
D. React less proportionately to price change
E. React equally to price change