Tag: economics

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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 is said to be __________, when any change in price produces no change in the quantity supplied of a commodity.

  1. relatively more elastic

  2. perfectly elastic

  3. perfectly inelastic

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

Perfectly inelastic supply means the quantity supplied does not change at all regardless of price changes, resulting in a vertical 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 is ___________, when a small change in price causes a greater change in quantity supplied.

  1. relatively more elastic

  2. perfectly elastic

  3. perfectly inelastic

  4. relatively Inelastic
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

When a small change in price leads to a larger percentage change in quantity supplied, the supply is relatively more elastic (elasticity > 1).

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 formula for calculating price elasticity of supply is ________________.

  1. $\displaystyle E _s = \frac{percentage \,\, change \,\, in \,\, price}{percentage \,\, change\,\, in \,\, quantity\,\, demanded}$
  2. $\displaystyle E _s = \frac{percentage \,\, change \,\, in \,\, quantity\,\, demanded }{percentage \,\, change\,\, in \,\, quantity\,\, supplied}$
  3. $\displaystyle E _s = \frac{percentage \,\, change\,\, in \,\, quantity\,\, supplied }{percentage \,\, change\,\, in \,\, price}$
  4. $\displaystyle E _s = \frac{ percentage \,\, change \,\, in \,\, quantity \,\, demanded }{percentage \,\, change\,\, in \,\, price}$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Price elasticity of supply is defined as the ratio of the percentage change in quantity supplied to 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

The supply is said to be ____________, when a very insignificant change in price leads to an infinite change in quantity supplied.

  1. relatively more elastic

  2. perfectly elastic

  3. perfectly inelastic

  4. relatively Inelastic
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Perfectly elastic supply occurs when an infinitesimal change in price results in an infinite change in quantity supplied, represented by a horizontal 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 is ________, when a greater change in price leads to smaller change in quantity supplied.

  1. relatively more elastic

  2. perfectly elastic

  3. perfectly inelastic

  4. relatively inelastic
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Relatively inelastic supply occurs when the percentage change in quantity supplied is less than the percentage change in price. This means the supply is not very responsive to price fluctuations.

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

Relatively in inelastic supply means: _____________.

  1. $E _s > 1$
  2. $E _s <1$
  3. $E _s =1$
  4. $E _s=0$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Elasticity of supply (Es) is defined as the ratio of the percentage change in quantity supplied to the percentage change in price. For relatively inelastic supply, this ratio is less than 1.

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 refers to the degree of responsiveness of supply of a good to changes in its.

  1. Demand

  2. Price

  3. Cost of production

  4. State of technology
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

 Elasticity of supply measures the degree of responsiveness of quantity supplied to a change in own price of the commodity. It is also defined as the percentage change in quantity supplied divided by 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

The elasticity of supply is defined as the.

  1. Responsiveness of the quantity supplied of a good to a change in its price

  2. Responsiveness of the quantity supplied of a good without in its price

  3. Responsiveness of the quantity demanded of a good to a change in its price

  4. Responsiveness of the quantity demanded of a good without change in its price
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

1:The elasticity of supply is the responsiveness of the quantity supplied and the change in price.
2:The elasticity of supply is measured as the ratio of proportionate change in the quantity supplied to the proportionate 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

Elasticity of supply is measured by dividing the percentage change in quantity supplied of a good by __________.

  1. Percentage change in income

  2. Percentage change in quantity demanded of goods

  3. Percentage change in price

  4. Percentage change in taste and preference
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Es$=\dfrac{\%\Delta Q}{\%\Delta P}$.
The elasticity of supply is measured by dividing the percentage change in quantity supplied of a good by the Percentage change in price