Types Nature And Determinants Of Elasticity And Their Measurement - Economics Jamb Past Questions and Answers

Question 36 :

• JAMB 1997

A good is said to be inferior if its demand?

A. Rises as it price rises
B. Falls as it price rises
C. Rises as it price falls
D. Is perfectly inelastic

Question 37 :

• 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

Question 38 :

• JAMB 1997

If the percentage change in the income of the consumers of an industrial product is less than the resulting percentage change in the quantity demanded of the product, then the income elasticity of demand for the product is?

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

Question 39 :

• JAMB 1997

What is the effect of inelastic demand for agricultural products on the income of a farmer?

A. A price rise results in its fall
B. A price fall results in its fall
C. A price fall results in its rise
D. A price rise leaves the income unchanged

Question 40 :

• JAMB 1998

If an increase in the price of a commodity leads to increase in total revenue, then it means that the demand for this commodity is?

A. Normal
B. Elastic
C. Inelastic
D. Abnormal