Price elasticity of demand - Jamb Economics Past Questions and Answers

Question 26:

• JAMB 2001

If the price elasticity of demand for a good is 0.43, an increase in the price of the good will result in?

A. An increase in profit by 43%
B. A net gain
C. A decrease in profit 43%
D. A net loss

Question 27:

• JAMB 2001

If the price elasticity of demand for a good is 0.43, an increase in the price of the good will result in?

A. An increase in profit by 43%
B. A net gain
C. A decrease in profit 43%
D. A net loss

Question 28:

• JAMB 2001

A normal good with close substitutes is likely to have its price elasticity of demand?

A. Between zero and one
B. Equal to unity
C. Less than unity
D. Greater than unity

Question 29:

• JAMB 2006

An important determinant of price elasticity of demand is

A. The state of technology
B. The prices of other commodities
C. The ease of substitution
D. Government policy

Question 30:

• JAMB 2008

If the demand elasticity coefficient of cars is 0.5, it implies that the demand for petrol is

A. Elastic
B. Perfectliy inelastic
C. Inelastic
D. Perfect elastic