The Theory of Supply - Jamb Economics Past Questions and Answers

Question 26:

• JAMB 1981

In this diagram, So So is the original supply curve while S₁ S₁ represent?

A. A movement along a give supply curve
B. An increase in supply
C. Decrease in supply
D. A perfect elastic supply curve
E. An abnormal supply curve

Question 27:

• JAMB 1983

In the diagram P₁ S is a supply curve for a manufactured. it is shows that

A. When price is OP₁ quantity supplied is infinitely elastic
B. The higher the price the greater the quantity supplied
C. The higher the price the lower the quantity supplied
D. When price is zero quantity supplied becomes infinite
E. When price is infinite quantity supplied becomes zero

Question 28:

• 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 29:

• 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 30:

• 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