WAEC Economics Past Questions & Answers - Page 137

681.

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

Correct answer is A

No explanation has been provided for this answer.

682.

At a co-efficient of price elasticity of supply of 0.5, supply is

A.

Perfectly inelastic

B.

Inelastic

C.

Perfectly elastic

D.

Elastic

Correct answer is B

No explanation has been provided for this answer.

683.

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

A.

Composite supply

B.

Joint supply

C.

Competitive supply

D.

Short run supply

Correct answer is C

No explanation has been provided for this answer.

684.

When the price of a commodity increases and the quantity demanded also increases, this is a case of

A.

Exceptional demand

B.

Derived demand

C.

Competitive demand

D.

Joint demand

Correct answer is A

No explanation has been provided for this answer.

685.

The type of demand that exist between torchlight and battery is

A.

Competitive demand

B.

Complemetary demand

C.

Composite demand

D.

Joint demand

Correct answer is D

Joint demand occurs when the demand for one product is directly linked to the demand for another. This means the two goods need to work together to provide a benefit for the consumer and one cannot work without the other. E.g car and petrol, torch and batteries.