Economics Practice Test – Theory of Price Determination (Questions with Answers and Explanations)

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. (WASSCE 2007)

A. 12 bags      B. 24 bags      C. 28 bags      D. 30 bags.

When a change in price does not affect the quantity demanded of a commodity, the price elasticity of demand is _______ (WASSCE 2004)

A. fairly inelastic      B. infinitely inelastic      C. perfectly inelastic      D. unitary elastic.

The type of demand that exists between torchlight and battery is _______ (WASSCE 2009)

A. competitive demand      B. complementary demand      C. composite demand      D. independent demand.

The gap between demand and supply curves below the equilibrium price is _____ (WASSCE 2008)

A. normal demand      B. excess demand      C. equilibrium quantity      D abnormal demand

An increase in the supply of a commodity X automatically results in an increase in the supply of another commodity Y. This is a case of ______ (WASSCE 2013)

A. elastic supply.      B. joint supply.      C. exceptional supply.      D. competitive supply