Tag: economics

Questions Related to economics

When price of a commodity increase from Rs.10 to Rs.12 per unit, its supply goes up from 100 units to 140 units, the elasticity of supply would be ____.

  1. $1$

  2. $2$

  3. $3$

  4. $4$


Correct Option: B

If a fall in price of 'Y' result in a decrease in the sale of 'X', the two goods appear to be _____________.

  1. substitutes goods

  2. complementary goods

  3. inferior goods

  4. neutral goods


Correct Option: A

When price of a commodity increase from Rs. 10 Rs. 12 per units, its supply goes up from 100 units to 140 units, the elasticity of supply would be _______.

  1. 1

  2. 2

  3. 3

  4. 4


Correct Option: B

The supply curve which is beginning at the origin has.

  1. A price elasticity of supply less than one

  2. A price elasticity of supply equal to one

  3. A price elasticity of supply more than one

  4. A positive price elasticity of supply


Correct Option: B

Supply is likely to be more price elastic ________,

  1. in the short run rather than the long run

  2. if factors of production are relatively immobile between industries

  3. if there are very few producers

  4. if it is easy to expand output


Correct Option: D

Percent increase in the price of sugar reduces sugar consumption by about 5 percent. The increase causes households to _____________.

  1. spend more on sugar

  2. spend less on sugar

  3. spend the same amount on sugar

  4. consume more goods like coffee and tea that are complements of sugar


Correct Option: A

Which one of the following labour resources will likely have the most inelastic supply schedule in the short run?

  1. Filling station attendants

  2. Sales clerks

  3. Construction labourers

  4. Dentist


Correct Option: D

 When the greater the elasticity of supply, the change in the new equilibrium price will _____________.

  1. be higher

  2. be higher than previous price

  3. be lower

  4. be lower than previous price


Correct Option: C

The _________ refers to the amount of a certain good producers are willing to supply when receiving a certain price.

  1. quantity demanded

  2. quantity purchased

  3. quantity supplied

  4. quantity sold


Correct Option: C

Usually, the demand for commodities, the consumption of which can be postponed, has an _________ demand as the prices rise and expected to fall again.

  1. elastic

  2. inelastic

  3. unitary

  4. All of above


Correct Option: A