The Theory of Demand - Jamb Economics Past Questions and Answers

Question 116:

• JAMB 2006

The law of demand can be expressed as

A. P = f(Q _d)
B. Q _d = f(\(\frac{1}{p}\)
C. P = f(\(\frac{1}{Q_d}\)
D. Qd = f(P)

Question 117:

• JAMB 2007

When the demand for a good increases owing to an increase in income, it means that

A. There is an increase in quantity demanded
B. Inflation has taken place
C. Demand has exceeded supply
D. There is an increase in demand

Question 118:

• JAMB 2007

The major determinant of cross elasticity of demand is the

A. Price of the good
B. Degree of necessity of the good
C. Level of income of consumers
D. Closeness of the substitutes

Question 119:

• JAMB 2008

A major determinant of the demand for a luxury goods is

A. The price of the goods
B. The price of other goods
C. The income of consumers
D. Tastes and fashion

Question 120:

• JAMB 2008

If income rises from N2000 to N4000 and quantity demanded increase from 80 units to 120 units, find the income elasticity of demand

A. 0.5
B. 1.2
C. 2.5
D. 4.0