Tag: economics

Quizzes (361) Questions (3598)

Questions Related to economics

Multiple choice economics theory of supply elasticity of supply supply - law of supply and price elasticity of supply law of supply and elasticity of supply

Supply is _________ when a change in the price causes no change in supply.

  1. perfectly elastic

  2. perfectly inelastic

  3. unitary elastic

  4. less elastic
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

When a change in price results in zero change in quantity supplied, the supply curve is vertical, representing perfectly inelastic supply.

Multiple choice economics theory of supply elasticity of supply supply - law of supply and price elasticity of supply law of supply and elasticity of supply

When with a minute change or without any change in price, supply may change to any extent, then the supply is _____________.

  1. perfectly elastic

  2. perfectly inelastic

  3. unitary elastic

  4. more elastic
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

it means that any decrease in the product price would immediately cause the supply to shift to zero.
Algebraically, it means that the elasticity of a good or service (the percentage change of quantity / the percentage change of price) equals to infinity.

Multiple choice economics theory of supply elasticity of supply supply - law of supply and price elasticity of supply law of supply and elasticity of supply

Which methods are used for the measurement of elasticity of supply?

  1. Percentage or Proportionate Method

  2. Geometric or Diagrammatic Method

  3. Both A and B

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Elasticity of supply can be measured using the percentage (proportionate) method, which uses numerical values, or the geometric (diagrammatic) method, which uses the slope of the supply curve.

Multiple choice economics theory of supply elasticity of supply supply - law of supply and price elasticity of supply law of supply and elasticity of supply

The supply of agricultural products is generally ________.

  1. elastic

  2. inelastic

  3. perfectly elastic

  4. perfectly inelastic
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The supply of agricultural products is generally inelastic that means proportionate change in quantity demand is lesser than the proportionate change in price as agricultural products are necessities since it provides basic subsistence to people.

Multiple choice economics theory of supply elasticity of supply supply - law of supply and price elasticity of supply law of supply and elasticity of supply

Elasticity of supply measures ______.

  1. variability of change in supply

  2. reliability of supply

  3. rate at which quantity offered for sale change with change in price

  4. all of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Elasticity of supply quantifies the rate of change in the quantity supplied in response to a change in the price of the commodity.

Multiple choice economics theory of supply elasticity of supply supply - law of supply and price elasticity of supply law of supply and elasticity of supply

Elasticity of supply is defined as ________.

  1. % change in supply/% change in price

  2. %change in price/% change in supply

  3. change in supply/change in price

  4. change in supply/% change in price
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The standard formula for price elasticity of supply is the percentage change in quantity supplied divided by the percentage change in price.

Multiple choice economics theory of supply elasticity of supply supply - law of supply and price elasticity of supply law of supply and elasticity of supply

If a dealer is prepared to supply 1000 sets of a 29" Colour TV if the price is Rs. 12,000 per set, however if at price Rs. 15,000 the dealer is prepared to supply only 1100 TV sets, the elasticity of supply is _________.

  1. 1

  2. 2

  3. 0.4

  4. 1.5
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Elasticity = (% change in Q) / (% change in P). % change in Q = (100/1000) = 10%. % change in P = (3000/12000) = 25%. Elasticity = 10/25 = 0.4.

Multiple choice economics theory of supply elasticity of supply supply - law of supply and price elasticity of supply law of supply and elasticity of supply

A perfectly inelastic supply curve will be _________.

  1. parallel to Y axis or a vertical line

  2. parallel to X axis

  3. U shaped

  4. downward sloping
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A perfectly inelastic supply curve means quantity supplied is constant regardless of price, which is represented by a vertical line parallel to the Y-axis.