Tag: economics

Questions Related to economics

 If Price Rs. 20, Quantity supplied 20, Price 19, Quantity supplied 50 then what will be the arc 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. 5.23

  2. 3.01

  3. 3.85

  4. 4.25

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Correct Option: C

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

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. unity elastic

  4. elasticity is less than $1$

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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?

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

  1. 0.5

  2. 1

  3. 0.75

  4. 1.25

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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 _______.

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

  1. 18

  2. 14

  3. 15

  4. 10

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Correct Option: B

Unitary elasticity of supply means _________.

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

  1. ${ E } _{ s }>1$

  2. ${ E } _{ s }<1$

  3. ${ E } _{ s }=1$

  4. ${ E } _{ s }=0$

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Correct Option: C

A horizontal supply curve parallel to the quantity axis (X-axis) implies that the elasticity of 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. zero

  2. infinity

  3. equal to one

  4. greater than zero but less than infinity

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Correct Option: B

Relatively elastic supply means ________.

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

  1. ${ E } _{ s }>1$

  2. ${ E } _{ s }<1$

  3. ${ E } _{ s }=\infty$

  4. ${ E } _{ s }=0$

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Correct Option: A

Elasticity of supply is greater than one when _________.

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

  1. proportionate change in quantity supplied is more than the proportionate change in price.

  2. proportionate change in price is greater than the proportionate change in quantity supplied.

  3. change in price and quantity supplied are equal

  4. none of the above

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Correct Option: A

Perfectly elastic supply means _________.

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

  1. ${ E } _{ s }>1$

  2. ${ E } _{ s }<1$

  3. ${ E } _{ s }=\infty $

  4. ${ E } _{ s }=0$

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Correct Option: C

The concept of consumer's surplus is useful in _______.

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

  1. distinguishing between Value-in-use and value-in-exchange.

  2. comparing the advantages of different places.

  3. useful in cost benefit analysis of projects.

  4. all of the above

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Correct Option: D