Price elasticity of demand - Jamb Economics Past Questions and Answers

Question 21:

• JAMB 1993

If the price elasticity of demand for a certain commodity is less than unity, then?

A. An increase in the price of the commodity will raise the total revenue of the producer
B. An increase in price leaves the total revenue unchanged
C. A decrease in price raises the total revenue of the supplier
D. A decrease in price leaves the total revenue constant

Question 22:

• JAMB 1994

A demand which is positively related to price is true of?

A. Normal goods
B. Giffen goods
C. Ostentatious goods
D. Capital goods

Question 23:

• JAMB 1994

Elasticity demand is an effective tool in the hands of a producer in that it enables him?

A. Raise his profit and lower his costs
B. Discourage buyers from cheating
C. Determine what he will produce
D. Set his price to maximize his profit

Question 24:

• JAMB 1994

Elasticity of demand is an effective tool in the hand of a producer in that it enables him

A. Rise his profits and lower his, costs
B. Discourage buyers from cheating
C. Determine what he will produce
D. Set his price to maximize his profit

Question 25:

• JAMB 1997

The elasticity of demand for a firm's product is 2.
If the firm reduces its price by 20 percent, its sales revenue will increase by?

A. 10 per cent
B. 20 per cent
C. 30 per cent
D. 40 per cent