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Economics Past Questions and Answers

Topic: Cross elasticity of demand

Jamb Economics Questions - Cross elasticity of demand

Question 6:
If the percentage change in the income of the consumers of an industrial product is less than the resulting percentage change in the quantity demanded of the product, then the income elasticity of demand for the product is?
  • A Less than one
  • B Equal to one
  • C Greater than one
  • D Equal to zero
View Answer & Explanation
Question 7:
Given that the elasticity of demand for a commodity is 2.5, the percentage change in the quantity demanded as a result of a 10 percent change in it price is?
  • A 0.25
  • B 0.40
  • C 4.00
  • D 25.00
View Answer & Explanation
Question 8:
Use the information below to answer questions.
When commodity X sold for N25 per unit, 50 units of commodity Y were purchased. With an increase in the price of commodity X to N50 per unit, the demand for commodity Y fell to 20 units.
Determined the cross elasticity of demand?
  • A 1.7
  • B 0.6
  • C -0.6
  • D -1.7
View Answer & Explanation
Question 9:
A normal good with close substitutes is likely to have its price elasticity of demand?
  • A Between zero and one
  • B Equal to unity
  • C Less than unity
  • D Greater than unity
View Answer & Explanation
Question 10:
The major determinant of cross elasticity of demand is the
  • A Price of the good
  • B Degree of necessity of the good
  • C Level of income of consumers
  • D Closeness of the substitutes
View Answer & Explanation