WAEC Economics questions: Theory of demand

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

1. Question 1· Theory of demand· WAEC

   The demand for labour is described as derived demand because labour is demanded

   • Afor its own sake
   • Bonly by government
   • Cfor what it helps to produce
   • Dat a fixed wage

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2. Question 2· Theory of demand· WAEC

   A rise in consumers' incomes leads to a fall in the demand for

   • Aa luxury good
   • Ba normal good
   • Can inferior good
   • Da complementary good

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3. Question 3· Theory of demand· WAEC

   If 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

   • A0.5
   • B2.0
   • C1.0
   • D0.2

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4. Question 4· Theory of demand· WAEC

   A change in demand caused by a rise in income shifts the demand curve

   • Aalong itself
   • Bto the left
   • Cto the right
   • Dto the origin

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5. Question 5· Theory of demand· WAEC

   Effective demand is the desire for a commodity backed by

   • Aadvertisement
   • Bthe ability and willingness to pay
   • Cgovernment approval
   • Dproduction

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6. Question 6· Theory of demand· WAEC

   A rise in the price of tea leads to a rise in the demand for coffee. Tea and coffee are

   • AGiffen goods
   • Bcomplements
   • Cinferior goods
   • Dsubstitutes

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7. Question 7· Theory of demand· WAEC

   A rise in the price of tea is likely to increase the demand for coffee because the two goods are

   • Asubstitutes
   • Bcomplements
   • Cinferior goods
   • Dgiffen goods

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8. Question 8· Theory of demand· WAEC

   An increase in the price of tea will increase the demand for

   • Atea
   • Bsugar
   • Ccups
   • Dcoffee

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9. Question 9· Theory of demand· WAEC

   As Musa's income rises, he buys less garri and more rice. For Musa, garri is

   • Aa luxury good
   • Ba normal good
   • Can inferior good
   • Da complementary good

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10. Question 10· Theory of demand· WAEC

    A demand curve normally slopes downwards from left to right because

    • Acosts rise with output
    • Bsellers supply more at higher prices
    • Cincomes fall as prices rise
    • Dmore is bought at lower prices

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11. Question 11· Theory of demand· WAEC

    The price elasticity of demand for a product is 0.4. A 10% rise in its price will reduce the quantity demanded by

    • A40%
    • B0.4%
    • C25%
    • D4%

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12. Question 12· Theory of demand· WAEC

    The price of a good rises from ₦100 to ₦120 and quantity demanded falls from 50 to 45 units. The price elasticity of demand is

    • A0.5
    • B2
    • C1
    • D0.25

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13. Question 13· Theory of demand· WAEC

    Demand for salt is price-inelastic because

    • Ait has many substitutes
    • Bit is a luxury
    • Cit takes a small part of income and has few substitutes
    • Dit is durable

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14. Question 14· Theory of demand· WAEC

    Price elasticity of demand is 2.5. Demand for the good is

    • Aelastic
    • Binelastic
    • Cunitary
    • Dperfectly inelastic

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15. Question 15· Theory of demand· WAEC

    If a 10% fall in price leads to a 20% rise in quantity demanded, demand is

    • Aunitary
    • Binelastic
    • Celastic
    • Dperfectly inelastic

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16. Question 16· Theory of demand· WAEC

    Goods whose demand falls as income rises are

    • Anormal goods
    • Binferior goods
    • Cluxury goods
    • Dcomplementary goods

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17. Question 17· Theory of demand· WAEC

    According to the law of demand, when all other factors remain constant,

    • Athe lower the price, the higher the quantity demanded
    • Bthe higher the price, the higher the quantity demanded
    • Cdemand does not depend on price
    • Dsupply creates its own demand

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18. Question 18· Theory of demand· WAEC

    When the price of a good rises from ₦100 to ₦120, quantity demanded falls from 50 to 40 units. Find the price elasticity of demand.

    • A0.5
    • B1
    • C2
    • D0.2

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19. Question 19· Theory of demand· WAEC

    Goods that are demanded together, such as cars and petrol, are said to have

    • Ajoint demand
    • Bcompetitive demand
    • Cderived demand
    • Dcomposite demand

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20. Question 20· Theory of demand· WAEC

    The demand for salt is price-inelastic mainly because salt

    • Ais a luxury
    • Bhas no close substitute and takes a small part of income
    • Chas many substitutes
    • Dis durable

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