Meaning and determinants of supply - Jamb Economics Past Questions and Answers

Question 21:

• JAMB 1983

The curves D_o D_o and S_oS_o are the demand and supply curves respectively. What happens when government subsidizes producers in order to boost output?

A. The supply curve will shift from S_oS_o to S₂S₂
B. The supply curve will shift from S_oS_o to S₁S₁
C. The supply curve will shift fromS ₂S₂ to S₁S₁
D. The supply curve will shift from S₁S₁ to S_oS_o
E. The demand curve will shift from D_oD_o to D₁D₁

Question 22:

• JAMB 1984

In the diagram, the supply curve So So shifts to a new position S₁ S₁ to indicate

A. A drop in supply
B. A rise in supply
C. A supply- push inflation
D. A stable supply curve
E. An increase in quantity supplied

Question 23:

• JAMB 1985

If in the short-run commodity X and commodity Y are supplied jointly, which of the following is correct?

A. An increase in demand for X will increase the supply of Y
B. An increase in demand for X will shift the supply of Y
C. An increase in demand for Y will raise the price of X
D. An increase in demand for X will cause less of Y to be produced
E. A probable tax on Y will cause more of X to be supplied

Question 24:

• JAMB 1987

An increase in supply will lower price unless?

A. Supply is perfectly inelastic
B. Demand is perfectly inelastic
C. It is followed by an increase in demand
D. Demand is highly inelastic

Question 25:

• JAMB 1987

In the diagram, above Ps is the supply curve for a particular commodity, while OP is the price which of the following statements is correct?

A. The quantity supplied is infinitely elastic
B. When price is zero, the quantity supplied infinite
C. When price is infinite, the quantity supplied zero
D. The quantity supplied is definite