WAEC Past Questions and Answers - Page 3176

15,876.

The tendency for workers to value their leisure hours more than hours of work as wage rate increases gives rise to

A.

Positively sloping supply curve

B.

Perfectly elastic supply curve

C.

Backward bending supply curve

D.

Perfectly inelastic

Correct answer is A

No explanation has been provided for this answer.

15,877.

Price elasticity of demand or supply measures how responsive

A.

Consumers are to a change in price

B.

Sellers are to a change in price

C.

Sellers are to a change in price

D.

Buyers are to a change in income

Correct answer is C

Price elasticity of supply or demand measures the responsiveness to the supply of a good or service after a change in its market price.

15,878.

The demand for torch and batteries is an example of

A.

Competitive demand

B.

Composite demand

C.

Complementary demand

D.

Derived demand

Correct answer is C

Complementary demand: Demand for a product generated by the demand for a related but different product, such as by computers for software, vehicles for tires, shaving razors for blades.

15,879.

What effect will an increase in price have on the total revenue of a firm whose product has inelastic demand? Total revenue will

A.

Increase

B.

Fall

C.

Fluctuate

D.

Remain unchanged

Correct answer is A

If prices for inelastic goods are increased, the total revenue increases, but it would lead to a small decrease in quantity demanded. This means that firms that deal in inelastic goods or services can increase prices, selling a little less but making higher revenues.

15,880.

The demand curve for neccessity is usually

A.

Vertical

B.

Backward bending

C.

Horizontal

D.

Negatively sloped

Correct answer is A

Necessity goods are products and services that consumers will buy regardless of the changes in their income levels, therefore making these products less sensitive to income change.