JAMB and WAEC Economics questions: Theory of demand

43 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· 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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4. Question 4· 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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5. Question 5· 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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6. Question 6· 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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7. Question 7· 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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8. Question 8· 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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9. Question 9· Theory of demand· JAMB

   Cross elasticity of demand between substitutes is

   • Ainfinite always
   • Bnegative
   • Czero
   • Dpositive

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10. Question 10· 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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11. Question 11· 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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12. Question 12· 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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13. Question 13· 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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14. Question 14· 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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15. Question 15· 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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16. Question 16· 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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17. Question 17· 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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18. Question 18· Theory of demand· WAEC

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

    • Atea
    • Bsugar
    • Ccups
    • Dcoffee

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19. Question 19· 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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20. Question 20· 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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