WAEC Economics Past Questions & Answers - Page 69

The reason is that there are two effects related to determining supply. The substitution effect states that a higher wage makes work more attractive than leisure. The income effect states that a higher wage means workers can achieve a target income by working fewer hours.

Backward bending supply curve is the normal case for most workers. Most economists agree that a worker's supply curve for labour slopes upward at lower wages and bends backward at higher wages. 

Fixed supply: The total land area of earth (in the sense of the surface area available to men) is fixed. First, supply of land is fixed or inelastic from society's point of view.

Joint supply is an economic term referring to a product or process that can yield two or more outputs. Common examples occur within the livestock industry: cows can be utilized for milk, beef and hide; sheep can be utilized for meat, milk products, wool and sheepskin.

A normal demand curve (which when graphed goes down and to the right) shows that when prices go up, the amount of a good that is demanded goes down. Examples are when the price of gas goes up, people buy less of it and do less driving. ... An exceptional demand curve is one wherein the opposite occurs. it is a  demand curve rising upwards showing that people buy more when the prices go up. the following are the reasons for an exceptional demand curve;

Inferior goods/ Giffen goods

Goods having prestige value

Price expectation

Fear of shortage

Change in income

Change in fashion

Basic necessities of life

Normal goods are a type of goods whose demand shows a direct relationship with a consumer's income. A normal good is one whose demand increases when people's incomes or the economy rise.