Effects Of Changes In Supply And Demand On Equilibrium Price And Quantity Jamb Economics Past Questions
Question 36
The figure above shows change in demand for commodity x which is a normal good. Use it to answer the questions that follows
Which of the following caused the change in demand from D0 D0 to D2 D2?
- A. Fall in income of consumer
- B. Rise in the price of a substitute
- C. Rise in the price of a complement
- D. Fall in the supply of commodity x
Question 37
The price of a good will not be affected by the imposition of a sales tax on it if the?
- A. supply is inelastic
- B. demand is inelastic
- C. supply is perfectly elastic
- D. demand is perfectly elastic
Question 38
If the equilibrium price of a certain commodity is N120.00 and the government fixed its price at N110.00, the supply will be?
- A. greater than the equilibrium supply
- B. smaller than the equilibrium supply
- C. the same as the equilibrium supply
- D. a determinant of the market forces of equilibrium
Question 39
Which of the following statement is TRUE of the effect of changes in demand and supply on price?
- A. A decrease in supply will lead to fall in price and a fall in the quantity bought and sold
- B. An increase in demand will lead to a fall in price and quantity bought and sold
- C. A decrease in demand will lead to a rise in price and in the quantity bought and sold
- D. An increase in supply will lead to a fall price and a rise in the quantity bought and sold
Question 40
The effect of an increase in demand for a commodity accompanied by a decrease in supply will be to?
- A. raise the price of the commodity and affect the quantity in an indeterminate way
- B. decrease the equilibrium quantity and affect the price in an intermediate way
- C. raise its price as well as the equilibrium quantity
- D. lower it price while affecting the equilibrium quantity in an interminate way
