Tag: economics

Questions Related to economics

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


Correct Option: B

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


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?

  1. Percentage or Proportionate Method

  2. Geometric or Diagrammatic Method

  3. Both A and B

  4. None of these


Correct Option: C

The supply of agricultural products is generally ________.

  1. elastic

  2. inelastic

  3. perfectly elastic

  4. perfectly inelastic


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.

The vertical supply curve represents ___________ elasticity.

  1. infinite

  2. zero

  3. less

  4. one


Correct Option: A

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


Correct Option: C

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


Correct Option: A

In the short run the supply is ________.

  1. relatively less elastic

  2. more elastic

  3. inelastic

  4. perfectly elastic


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 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


Correct Option: C

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


Correct Option: A