Economics Practice Test – Theory of Demand

If a 10% rise in price causes a 5% decrease in the quantity demanded of a commodity, the elasticity of demand is ______ (JAMB 2014)

A. inelastic
B. Unitary elastic
C. zero elastic
D. elastic

If the quantity of rice bought decreases from 250 tonnes to 200 tonnes owing to a 2% rise in price, it shows that there is a change in _____ (JAMB 2012)

A. consumers’ income
B. demand
C. consumers’ tastes
D. quantity demanded

Which of the following is a major determinant of price elasticity of demand? (JAMB 2016)

A. The price of the commodity
B. Availability of factors of production
C. The prices of factors of production
D. Income of the consumer

From the graph above, the price elasticity of demand is ______ (JAMB 2013)

A change in demand for a normal good implies that there is a ______ (JAMB 2014)

A. change in the price elasticity of demand
B. change in the quantity demanded as price changes
C. shift in the demand curve
D. movement along given demand curve.