If commodity X is a by-product of commodity Y, this implies that both commodities are
In competitive supply
In composite supply
Jointly supplied
In excess supply
Correct answer is B
When the process of making one thing results in a second product as well, that second thing is called a byproduct. Example, the production of computer systems, require a software to function, hence would be jointly supplied.
Composite Supply is one where 2 or more goods or services are supplied together.
If the coefficient of price elasticity of supply is greater than one, the supply is said to be
Perfectly elastic
Fairly inelastic
Infinitely inelastic
Fairly elastic
Correct answer is D
If a price elasticity of supply is greater than 1, it means supply is relatively or fairly elastic.
A set of factors that can shift the supply curve are changes in
Weather, price and technology
Technology, weather and population
Technology, price and taste
Population, price and taste
Correct answer is B
A shift in the supply curve is brought about by a change in supply. Changes in production cost and related factors can cause an entire supply curve to shift right or left.
A supply curve will shift to the right when there is an increase in the change in supply, and it will shift to the left when there is a decrease in the change in supply.
Some of the factors that may cause a supplier to be unable to supply to the market include;
- changes in the costs of production.
- changes in technology.
- population size.
- government taxes/subsidies/regulations.
- weather conditions.
- wars/disaster
If a consumer plans to spend 120k on four oranges but spent 80k, his consumer surplus is
N1.50
N0.40
N1.00
N2.00
Correct answer is B
Consumer Surplus is the difference between the price that consumers pay and the price that they are willing to pay.
consumer surplus = 120 - 80 = 40
The law of diminishing marginal utility explains why
The slope of a normal demand curve is negative
An abnormal demand curve slopes upwards
The slope of a normal demand curve is positive
The consumption of inferior goods increases with income
Correct answer is A
In economics, the law of diminishing marginal utility states that the marginal utility of a good or service declines as its supply increases.
The law of diminishing marginal utility helps to explain the negative slope of the demand curve and the law of demand. If the satisfaction obtained from a good declines, then buyers are willing to pay a lower price, hence demand price is inversely related to quantity demanded, which is the law of demand.