The Theory of Demand - Jamb Economics Past Questions and Answers

Question 31:

• JAMB 1978

If the consumer demand for product X increases as the price of product Y decreases we can be fairly certain that X

A. X and Y are complementary commodities
B. X and Y are substitute goods
C. X and Y are independent goods
D. X and Y are jointly supplied
E. X and Y are inferior commodities

Question 32:

• JAMB 1978

The numerical measure of elasticity is

A. \(\frac{\text{%change in Q}}{\text{%change in P}}\)
B. \(\frac{\text{change in Q}}{\text{change in P}}\)
C. \(\frac{\text{%change in P}}{\text{%change in Q}}\)
D. \(\frac{\text{change in P plus change in Q}}{\text{change in P}}\)

Question 33:

• JAMB 1979

If two commodities are good substitutes for one another, e.g butter and margarine,an increase in the demand for one will reduce the demand for the other. This type of demand is called

A. Composite demand
B. Elastic demand
C. Derived demand
D. Competitive demand
E. Inelastic demand

Question 34:

• JAMB 1979

when the demand curve shift to the right it indicate that a larger quantity is demanded at each price. This is caused by one of the following

A. A fall in income
B. A rise in the price of a complement
C. A fall in the price of substitute
D. A change in taste against this commodity
E. None of the above

Question 35:

• JAMB 1979

If the quantity demanded of a commodity increases from 20 to 30 when there is an increase in price from N4 to N5, the elasticity of demand is

A. Zero
B. 1
C. 2
D. 5
E. 10