Demand and Supply Generix Content - Demand and Supply
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WAEC questions for "Economics :: Demand and Supply"
Q1

The demand and supply function of a commodity are given as follows:     Qd=20-2p, Qs=6p-12 where p = price in Naira, Qd = Quantity demanded and Qs = Quantity supplied. The equilibrium price is

A

2 Naira

B

4 Naira

C

6 Naira

D

20 Naira

E
Q2

The type of demand that exists between torchlight and battery is

A

competitive demand

B

complementary demand

C

composite demand

D

independent demand

E
Q3

If a fall in price of one commodity leads to an increase in the supply of another commodity, both commodities have

A

composite supply

B

joint supply

C

competitive supply

D

short-run supply

E
Q4

If in the short-run commodity X and commodity Y are supplied jointly, which of the following is correct?

A

An increase in demand for X will increase supply of Y

B

An increase in demand for X will leave the supply of Y unchanged

C

An increase in demand for Y will raise the price of X

D

An increase in demand for X will cause less of Y to be produced

E
Q5

If an increase in earnings leads to more of a commodity being demanded, the good is said to have

A

positive income elasticity

B

negative income elasticity

C

positive cross elasticity

D

negative cross elasticity

E
Q6

Interaction of supply and demand for labour determines

A

production 

B

income

C

wage

D

profit

E
Q7

Which of the following factors does not cause a change in demand?

A

Taste and fashion

B

Vagaries of weather

C

Price of other commodities

D

Price of the commodity

E
Q8

If goods P and Q are jointly demanded, an increase in the price of P will likely

A

leave the demand for Q constant but reduce the quantity demanded of P

B

reduce the quantity demanded of P but increase the price of Q

C

increase the quantity supplied of Q

D

decrease the quantity demanded of Q

E
Q9

The gap between demand and supply curves above the equilibrium price is

A

normal demand

B

excess supply 

C

equilibrium quantity

D

abnormal demand

E
Q10

Which of the following determinants of supply cannot be predicted easily?

A

Price of the commodity

B

New techniques of production

C

National emergencies

D

Mobility of labour

E
Q11

If the co-efficient of elasticity of demand is 1.5, then the demand is

A

fairly inelastic

B

perfectly elastic

C

elastic

D

inelastic

E
Q12

The lower the price of a commodity, the greater the quantity demanded. This based on the assumption that consumers'

A

income is diminished

B

income remains the same

C

utility is diminshed

D

population is high

E
Q13

The demand for beans in bags is given by the function Q-36+0.4P=0. Where P is price in Naira and Q is quantity, find Q when P=20 Naira.

A

12 bags

B

24 bags

C

28 bags

D

30 bags

E
Q14

If the price of goods X rises and the quantity demanded of good Y increases then the two goods X and Y must be

A

inferior goods

B

substitutes

C

complements

D

free goods

E
Q15

The percentage change in quality demanded is

A

112.7%

B

15.7%

C

16.7%

D

19.7%

E
Q16

In a situation where demand is perfectly elastic, imposition of a tax on a commodity to raise its price will result in

A

consumer increasing their demand for the product

B

consumers' demand for the product remaining unchanged

C

consumers shifting completely to substitution

D

suppliers increasing the supply of the product

E
Q17

A movement along the same demand curve either upwards or downwards as a result of charges in price implies

A

a change in demand

B

a change in quantity demanded

C

an increase in demand

D

a shift in the demand curve to the right

E
Q18

What are inferior goods? These are goods 

A

that are generally in short supply

B

that are no longer in demand

C

whose demand falls as income increases

D

whose price falls as demand increases

E
Q19

The desire for good without the ability to pay is called

A

choice

B

effective demand

C

joint demand

D

wants

E
Q20

Amount of goods offered to the market at respective prices and presented in a table is called

A

price schedule

B

supply shedule

C

scale of preference

D

demand shedule

E
Q21

At the equilibrium price, quantity demands is

A

greater than quality supplied

B

equal to quantity supllied

C

less than quantity supplied

D

equal to excess supply

E
Q22

If elasticity of demand for a commodity is less than one, demand is

A

unitary elastic

B

inelastic

C

infinitely elastic

D

zero elastic

E
Q23

The gap between demand and supply curves below the equilibrium price indicates

A

excess demand

B

excess supply

C

equilibrium quantity

D

equilibrium price

E
Q24

Demand for inferior goods is an example of

A

expansion of demand

B

contraction of demand

C

individual demand

D

abnormal demand

E
Q25

The percentage change in supply

A

20

B

30

C

40

D

50

E
Q26

The elasticity of supply is

A

infinite 

B

equal to one

C

less than one

D

equal to zero

E
Q27

The market supply curve slope upwards from left to right indicating that

A

at a lower price, more is supplied

B

two commodities can be supplied at the same time

C

at a lower price, less is supplied

D

producers pay high taxes

E
Q28

A normal demand curve slopes

A

downwards from left to right

B

upwards from left to right

C

downwards from right to left

D

upwards from the orgin

E
Q29

If the quality demanded of a commodity increase from 20 to 30 units when there is an increase in price from 4 naira to 5 naira, the elasticity of demand

A

0

B

1

C

2

D

5

E
Q30

Price elasticity of supply measures the responsiveness of quality supplied to

A

changes in suppliers' income

B

changes in prices of other commodities 

C

a change in the price of the commodity

D

a change in the demand for the product

E
Q31

The demand for money is

A

derived demand

B

composite demand

C

joint demand

D

complimentary demand

E
Q32

Which of the following curves in the diagram below represents the firm's marginal cost (MC)?

 

A

Curve P 

B

Curve N

C

Curve M

D

Curve L

E
Q33

When elasticity of demand curve is

A

perfectly elastic

B

perfectly inelastic

C

concave

D

downward sloping

E
Q34

What type of price elasticity of demand is the diagram below representing?

A

Perfectly inelastic demand

B

Perfectly elastic demand

C

Fairly inelastic demand

D

Unitary elasticity

E
Q35

An increase in the demand for butter reduces the demand for margarine; this type of demand is called

A

competitive demand 

B

elastic demand

C

derived demand

D

composite demand

E
Q36

A commodity is used to have derived demand when it

A

has a joint demand with another commodity

B

is demanded by the rich only

C

is demanded for immediate consumption

D

is demanded because of what it can help to produce

E
Q37

The incidence of an increase in tax on a commodity with perfectly inelastic demand will be on the

A

wholesaler

B

retailer

C

government

D

consumer

E
Q38
The demand for a commodity not directly for immediate consumption but for the production for another commodity is
A
competitive demand
B
derived demand
C
composite demand
D
joint demand
E
Q39
If the quantity demanded of a particular commodity is represented by the function Qd=30-2p, what is the quantity demanded at a price of twelve Naira?
A
6 units
B
8 units
C
10 units
D
12 units
E
Q40
The responsiveness of demand to a change in income is the measurement of
A
foreign exchange rate
B
cross elasticity of demand
C
income elasticity of demand
D
price index elasticity
E
Q41
The upward sloping of the supply curve indicates that
A
more will be supplied as price rises
B
less will be supplied as price rises
C
supply is not a function of price
D
supply is static and demand is dynamic
E
Q42
The quantity supplied of books per week is represented by the function; Qs=70+1/2P. At a price of N8.00, the quantity supplied is
A
70
B
74
C
76
D
86
E
Q43
The movement along the same demand curve is a
A
change in demand
B
change in quantity demanded
C
shift in demand
D
market demand
E
Q44
The income elasticity of normal good is
A
positive
B
negative
C
zero
D
fixed
E
Q45
The demand for a commodity that serves two of more purpose is
A
competitive demand
B
complementary demand
C
composite demand
D
derived demand
E
Q46
A tax on a commodity whose demand is perfectly elastic will fall heavily on the
A
consumers
B
manufacturers
C
wholesalers
D
retailers
E
Q47
Income elasticity of demand is the measurement of the responsiveness of
A
price to changes in income
B
quality demanded to changes in income
C
changes in expenditure to changes in income
D
changes in expenditure to changes in price of the commodity
E
Q48
When price elasticity of supply is equal to 0.4, supply is said to be
A
inelastic
B
elastic
C
unitary elastic
D
perfectly elastic
E
Q49
The quality demanded of a commodity is influenced only by changes in
A
tastes
B
weather
C
price of the commodity
D
price of other commodity
E
Q50
Where a pen and a book are demanded together, the demand is said to be
A
composite
B
competitive
C
joint
D
dervied
E
Q51
Which of the following will shift the demand curve for Milo to the right?
A
An increase in customers' income
B
A rise in the price of Milo
C
A tax on cocoa producers
D
A fall in the quality demanded of Milo
E
A fall in the price of Milo
Q52
An exceptional demand is one in which the
A
supplier sells all that he takes to the market
B
consumers do not buy from the market
C
quality demanded falls as price falls
D
purchase of services and not products is considered
E
quality demanded and price move in opposite directions
Q53
Which of the following has a derived demand?
A
Labour
B
Butter
C
Television sets
D
Bread
E
Motor cars
Q54
Goods are said to be in competitive demand when they
A
are substitutes
B
are complementary to each other
C
are jointly demanded
D
have equal coefficients of elasticity
E
are identical
Q55
The formula for calculating price elasticity of demand coefficient is
A
percentage change in price/ percentage change in quality demanded
B
absolute decline in price/ absolute increase in quantity demanded
C
percentage change in quality demanded/ percentage change in price
D
absolute decline in quality demanded/ absolute increase in price
E
change in quality demanded/ decrease in price
Q56
When the price of a given product is reduced from N100 to N90, the quantity demanded increase from 50 to 60 units. From this, we can conclude that the product's
A
demand is elastic
B
demand is inelastic
C
demand is perfectly inelastic
D
supply is not elastic
E
demand has declined
Q57
A shift in the supply curve to the right will result in a
A
fall in both the price and supply
B
fall in price but an increase in supply
C
rise in both price and supply
D
rise in price and a fall in supply
E
no change in price and supply
Q58
If the price of product K declines, the demand curve for the complementary product J will
A
remain unchanged
B
shift to the right
C
decrease
D
shift to the left
E
slope upwards
Q59
If the price of a commodity rises from N2.00 to N4.00 and its supply increases from 100 to 125, then the co-efficient of elasticity of supply
A
0.025
B
0.24
C
0.22
D
0.25
E
0.23
Q60
If as a result of a fall in the price of commodity X, the quality demanded of commodity Y falls, then commodity X and Y are
A
complementary
B
in joint demand
C
luxuries
D
in composite demand
E
substitutes