JAMB Economics questions: Theory of demand

22 questions with answers and explanations. Tap an option to check yourself.

1. Question 1· Theory of demand· JAMB

   Which of the following shifts the demand curve for a normal good to the right?

   • Aa rise in the price of the good
   • Ba fall in the price of the good
   • Can increase in consumers' income
   • Dan increase in the cost of production

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2. Question 2· Theory of demand· JAMB

   If the cross elasticity of demand between two goods is positive, the goods are

   • Asubstitutes
   • Bcomplements
   • Cunrelated
   • Dinferior

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3. Question 3· Theory of demand· JAMB

   The demand for necessities such as salt is usually

   • Aunitary elastic
   • Bperfectly elastic
   • Cprice elastic
   • Dprice inelastic

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4. Question 4· Theory of demand· JAMB

   If income elasticity of demand is negative, the good is

   • Anormal
   • Binferior
   • Cluxury
   • Dnecessity with positive elasticity

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5. Question 5· Theory of demand· JAMB

   A Giffen good is one whose quantity demanded

   • Afalls as income rises
   • Brises as its price rises
   • Cnever changes
   • Drises only when income rises

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6. Question 6· Theory of demand· JAMB

   Cross elasticity of demand between substitutes is

   • Ainfinite always
   • Bnegative
   • Czero
   • Dpositive

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7. Question 7· Theory of demand· JAMB

   Ostentatious goods bought to show off wealth are called

   • AVeblen goods
   • BGiffen goods
   • Cinferior goods
   • Dfree goods

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8. Question 8· Theory of demand· JAMB

   The price of a good rises from ₦10 to ₦12 and quantity demanded falls from 100 to 80 units. The price elasticity of demand is

   • A1 (unitary)
   • B0.5
   • C2
   • D0

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9. Question 9· Theory of demand· JAMB

   Cars and petrol are an example of goods in

   • Acompetitive demand
   • Bjoint (complementary) demand
   • Cderived demand
   • Dcomposite demand

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10. Question 10· Theory of demand· JAMB

    The law of demand states that, other things being equal,

    • Ademand does not change with price
    • Bthe higher the price, the higher the quantity demanded
    • Cthe higher the price, the lower the quantity demanded
    • Dsupply creates its own demand

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11. Question 11· Theory of demand· JAMB

    Price falls from ₦50 to ₦40 and total revenue rises. Demand is

    • Aunitary
    • Binelastic
    • Celastic
    • Dperfectly inelastic

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12. Question 12· Theory of demand· JAMB

    Demand is unitary elastic when

    • Aelasticity is zero
    • Bquantity does not change
    • Cprice does not change
    • Dthe percentage change in quantity equals the percentage change in price

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13. Question 13· Theory of demand· JAMB

    Demand for a good is price elastic when

    • Aa small price change causes a large change in quantity demanded
    • Bquantity does not respond to price
    • Cprice and quantity change equally
    • Dthe good is a necessity

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14. Question 14· Theory of demand· JAMB

    When demand is price inelastic, a rise in price will

    • Amake demand perfectly elastic
    • Breduce total revenue
    • Cleave total revenue unchanged
    • Dincrease total revenue

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15. Question 15· Theory of demand· JAMB

    A good with a negative income elasticity of demand is

    • Aan inferior good
    • Ba normal good
    • Ca luxury good
    • Da Giffen good only

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16. Question 16· Theory of demand· JAMB

    Cars and petrol are

    • Acomplementary goods
    • Bsubstitutes
    • Cinferior goods
    • DGiffen goods

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17. Question 17· Theory of demand· JAMB

    A fall in the price of a good leads to

    • Aa fall in quantity demanded
    • Ba shift of the demand curve to the right
    • Can extension (increase) in quantity demanded
    • Dno change

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18. Question 18· Theory of demand· JAMB

    The demand for labour is an example of

    • Acompetitive demand
    • Bcomposite demand
    • Cjoint supply
    • Dderived demand

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19. Question 19· Theory of demand· JAMB

    A good whose quantity demanded rises when its price rises, contrary to the law of demand, is a

    • Asubstitute
    • Bnormal good
    • Cluxury good
    • DGiffen good

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20. Question 20· Theory of demand· JAMB

    When income rises from ₦100,000 to ₦120,000, demand for a good rises from 50 to 60 units. The income elasticity of demand is

    • A−1
    • B0.5
    • C2
    • D1

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