Tag: supply - law of supply and price elasticity of supply

Questions Related to supply - law of supply and price elasticity of supply

How many degrees are there to measure the elasticity of supply?

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

  1. Two

  2. Three

  3. Four

  4. Five

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Correct Option: D

Where will the supply curve be horizontal and parallel to the x-axis?

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

  1. Perfectly inelastic supply

  2. Unitary elastic supply

  3. Perfectly elastic supply

  4. Less elastic supply

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Correct Option: C
Explanation:

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

__________ are relatively less elastic in supply.

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

  1. Durable goods

  2. Perishable goods

  3. Both A and B

  4. None of the above

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Correct Option: B
Explanation:

This is because if the goods are less perishable, the demand will be lower and hence supplier has lesser power to deviate price. 

Which of the following points underlines the importance of elasticity of supply?

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

  1. Price determination

  2. Factor pricing

  3. Taxation

  4. All of these

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Correct Option: D
Explanation:

Anything that affects the price of a product will affect the price elasticity of supply. Here all factors affect the supply hence option D is correct.

"Elasticity of supply is defined as the percentage change in quantity supplied divided by percentage change in price." Who provided this definition?

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

  1. Lipsey

  2. Prof. Bilas

  3. McConnel

  4. Thomas

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Correct Option: B

Which of the following factors affect the elasticity of supply of a commodity?

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

  1. Nature of the inputs used

  2. Natural constraints

  3. Nature of the commodity

  4. All of these

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Correct Option: D

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

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

  1. perfectly elastic

  2. perfectly inelastic

  3. unitary elastic

  4. less elastic

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Correct Option: B

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

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

  1. perfectly elastic

  2. perfectly inelastic

  3. unitary elastic

  4. more elastic

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Correct Option: A
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.

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

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

  1. Percentage or Proportionate Method

  2. Geometric or Diagrammatic Method

  3. Both A and B

  4. None of these

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Correct Option: C

The supply of agricultural products is generally ________.

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

  1. elastic

  2. inelastic

  3. perfectly elastic

  4. perfectly inelastic

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Correct Option: B
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.