The Theory of Demand - Jamb Economics Past Questions and Answers

Question 96:

• JAMB 2000

Which of the following is an example of derived demand?

A. Tax relief
B. Labour
C. Wage increase
D. Entertainment

Question 97:

• JAMB 2000

Use the information below to answer questions.
When commodity X sold for N25 per unit, 50 units of commodity Y were purchased. With an increase in the price of commodity X to N50 per unit, the demand for commodity Y fell to 20 units.
Determined the cross elasticity of demand?

A. 1.7
B. 0.6
C. -0.6
D. -1.7

Question 98:

• JAMB 2001

If the price elasticity of demand for a good is 0.43, an increase in the price of the good will result in?

A. An increase in profit by 43%
B. A net gain
C. A decrease in profit 43%
D. A net loss

Question 99:

• JAMB 2001

If the price elasticity of demand for a good is 0.43, an increase in the price of the good will result in?

A. An increase in profit by 43%
B. A net gain
C. A decrease in profit 43%
D. A net loss

Question 100:

• JAMB 2001

A normal good with close substitutes is likely to have its price elasticity of demand?

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