JAMB and WAEC Economics questions: Theory of demand

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

1. Question 21· 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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2. Question 22· 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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3. Question 23· 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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4. Question 24· 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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5. Question 25· 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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6. Question 26· 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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7. Question 27· Theory of demand· JAMB

   Cars and petrol are

   • Acomplementary goods
   • Bsubstitutes
   • Cinferior goods
   • DGiffen goods

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8. Question 28· 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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9. Question 29· 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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10. Question 30· 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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11. Question 31· Theory of demand· JAMB

    The demand for labour is an example of

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

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12. Question 32· 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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13. Question 33· 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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14. Question 34· Theory of demand· WAEC

    Goods whose demand falls as income rises are

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

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15. Question 35· 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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16. Question 36· 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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17. Question 37· 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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18. Question 38· 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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19. Question 39· 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 40· 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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