The Theory of Demand - Jamb Economics Past Questions and Answers

Question 71:

• JAMB 1990

The demand for a product is said to be price inelastic if?

A. The price elasticity of demand is less than one
B. The price elasticity of demand is greater than one
C. A reduction in price results in increase in the quantity demanded
D. An increase in price results in a decrease in the quantity demanded

Question 72:

• JAMB 1990

Which of the following graphs represents the price-quantity relationship between tea and lemon, if they are perfect complements? choose the answer from the option above

A. A
B. B
C. C
D. D

Question 73:

• JAMB 1991

If the price of a ball point pen falls from N1.00 to N0.60 and the quantity demanded increases from 200 to 300, the point elasticity of demand is equal to?

A. 1.25
B. 0.80
C. 0.50
D. 0.40

Question 74:

• JAMB 1991

The cross-elasticity of demand between complementary goods is?

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

Question 75:

• JAMB 1991

Demand is relatively inelastic

A. At P₂ range
B. In the P₂ P ₄ price range
C. At P₃ only
D. At any price below P₂