2019 - JAMB Economics Past Questions and Answers - page 5

Effective demand is the desire, backed by willingness and ability, to buy at a given price.

A commodity whose income purchased as the consumer's income increases is a normal good because it's income elasticity is positive. 

Factors that affect or change shift the demand curve. Consumer preferences (Taste), taxation,  income, population, weather conditions, advertisement, price of other commodities are shift.

A market which involves with foreign exchange transactions and it also involves the buying and selling of foreign currencies is known as the foreign exchange Market. 

 A monopolist must consider elasticity of demand, since his aim is to produce the output that will yield him maximum profit, A monopolist can either decide his output or the price at which he will sell, but not both. If the demand curve is elastic,
He will decrease his price and if it is inelastic, he will increase his price in order to earn revenue.

The merging together of two businesses that are at different stages of production is known as vertical combination. Merging in this way with something further on in the production process is known as Forward Integration.

shifts of the supply also known as change in supply curve is determined by other factors affecting supply except price of the commodity when price is constant.

What shows graphical illustrations or diagrammatic representation of a supply schedule and slopes upwards from left to the right indicating a positive slope is the supply curve.

A supply curve sloping upwards from left to right or sloping downward from right to left.
 

National Income = Expenditure - Indirect taxes - Capital consumption (Depreciation)
N.I = 80,000 - 8,000 - 6,000 = ₤ 66,000m

GNP at cost = Expenditure - Depreciation
⇒ 80,000 - 6,000 = ₤ 72,000μ