Tag: economics

Questions Related to economics

If the time horizon is longer, the elasticity of supply will be _______.

  1. unity

  2. less than unity

  3. more elastic

  4. less than 0


Correct Option: C

Elasticity of supply depends upon ________.

  1. nature of the commodity

  2. production technology

  3. future outlook of prices

  4. all of the above


Correct Option: D

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 Rs. 15,000, the dealer is prepared to supply on 1250 sets of TV the elasticity of supply is ________.

  1. 1

  2. 2

  3. 0.75

  4. 1.4


Correct Option: A

In the long run the supply curve is ________.

  1. inelastic

  2. unity

  3. more elastic

  4. perfectly elastic


Correct Option: C

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