Price elasticity of demand - Jamb Economics Past Questions and Answers

Question 16:

• JAMB 1989

Which of the following factors is an important determinant of the magnitude of price elasticity of demand?

A. The production period
B. Cost of storage
C. Durability of the product
D. Availability of factors of production

Question 17:

• 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 18:

• 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 19:

• 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

Question 20:

• JAMB 1992

If demand is relatively inelastic and sellers are able to raise the price of their commodity, then there we be a?

A. Fall in both quantity of demand and total revenue
B. Fall in the quantity demanded and rise in total revenue
C. Fall in the quantity demanded and rise in marginal revenue
D. Rise in both the quantity demanded and the marginal revenue