Tag: elasticity of supply

Questions Related to elasticity of supply

A supply curve passing through any point on X axis (quantity) will have elasticity __________.

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

  1. less than 1

  2. more than 1

  3. just one

  4. zero

Show answer
Correct Option: A

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 the price rises to Rs. 15,000 he is prepared to supply 1,500 pieces. The elasticity of supply of the TV set 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. 1

  2. 2

  3. 0.75

  4. 1.4

Show answer
Correct Option: B

A 6% decrease in price has caused 9% decrease in quantity supplied, the price elasticity of supply will be _________.

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

  1. 1.33

  2. -1.33

  3. 1.5

  4. -0.66

Show answer
Correct Option: C

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

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

  1. 1.33

  2. -1.33

  3. 0.66

  4. -0.66

Show answer
Correct Option: A

The supply function is given as: Q= -100 + 10P.

Find the elasticity using point method, when price is Rs. 15.

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

  1. 4

  2. -3

  3. -5

  4. 3

Show answer
Correct Option: D