WAEC Economics Past Questions & Answers - Page 80

396.

How does producers expectation of a price fall affect the supply curve of a product? There will be

A.

A moment along the curve

B.

A leftward shift

C.

No shift of the supply curve

D.

A shift to the right

Correct answer is D

If sellers expect that the price of the good will be decreasing in the future, then they are likely to sell more today. This causes an increase in supply and a rightward shift of the supply curve. 

397.

The supply of rice in tons is given by the equation:
Qs -80 - 0.7 = 0.
Where Qs = Quantity supplied
P = price in naira.

Find Qs, when P = N40

A.

108tons

B.

52tons

C.

-52tons

D.

-108tons

Correct answer is A

Qs = - 80 - 0.7p
(minus x minus = +)
Qs = 80 + 0.7(40)
Qs= 80 + 28
Qs= 108

398.

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.

399.

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.

400.

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.