Types Nature And Determinants Of Elasticity And Their Measurement - Economics Jamb Past Questions and Answers

Question 16 :

• JAMB 1981

An increase in the price of butter causes an increase in the demand for margarine. This indicate that butter and margarine are?

A. Substitute goods
B. Complementary goods
C. Elastic goods
D. Inelastic goods
E. Inferior goods

Question 17 :

• 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

Question 18 :

• JAMB 1984

If X and Y are two goods, then the cross elasticity of demand for X WITH RESPECT TO y is defined as the?

A. Percentage change in the quantity of X divded by the percentage change in the price of Y
B. Percentage change in the quantity of X divided by change in the price of Y
C. Change in the quantity of X divided by change in the price of Y
D. Percentage change in the quantity of X divided by the price Y
E. Percentage change in the price of X divided by percentage change in the quantity of Y

Question 19 :

• JAMB 1984

For two substitution goods, the cross elastic of demand is?

A. Greater than one but less than two
B. Zero
C. Negative
D. Positive
E. Infinity

Question 20 :

• JAMB 1987

For normal goods the income elasticity of demand is?

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