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

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

Which of these does not affect elasticity of supply?

  1. Size of population

  2. Disposal income of consumer

  3. Consumers taste and preference

  4. All of the above


Correct Option: D

A supply curve passing through the origin will have elasticity _______.

  1. less than 1

  2. more than 1

  3. just one

  4. zero


Correct Option: C

Which of these will have highly inelastic supply curve ___________.

  1. perishable goods

  2. consumer durable goods

  3. items of elite class consumption

  4. all of the above


Correct Option: A

A 8% increase in price has caused 6% increase in quantity supplied, the price elasticity of supply will be __________.

  1. 1.33

  2. -1.33

  3. 0.75

  4. -0.66


Correct Option: C

A 6% increase in price has caused 8% decrease quantity supplied, the price elasticity of supply will be _________.

  1. 1.33

  2. -1.33

  3. 0.66

  4. -0.66


Correct Option: B

Very short period is the market condition where the supply remains perfectly ___________.

  1. elastic

  2. inelastic

  3. unity elastic

  4. elasticity less than 1


Correct Option: B

 If Price Rs. 20, Quantity supplied 20, Price 19, Quantity supplied 50 then what will be the arc elasticity of supply?

  1. 5.23

  2. 3.01

  3. 3.85

  4. 4.25


Correct Option: C

Very short period is the market condition where the supply remain perfectly____.

  1. elastic

  2. inelastic

  3. unity elastic

  4. elasticity is less than $1$


Correct Option: B

A dealer of air-conditioners is prepared to supply 1000 pieces of AC if the price is Rs. 20,000 per piece however he is prepared to supply 1200 pieces if the price is Rs. 24,000 per piece. What is the price elasticity of supply of AC?

  1. 0.5

  2. 1

  3. 0.75

  4. 1.25


Correct Option: B

The supply function of a product x is as Sx=4px+6.Where Px stand for price.The quantity supplied corresponding to price of Rs. 2 will be _______.

  1. 18

  2. 14

  3. 15

  4. 10


Correct Option: B