Tag: economics

Questions Related to economics

The supply is said to be __________, when any change in price produces no change in the quantity supplied of a commodity.

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

  1. relatively more elastic

  2. perfectly elastic

  3. perfectly inelastic

  4. relatively Inelastic

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Correct Option: C

The supply is ___________, when a small change in price causes a greater change in quantity supplied.

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

  1. relatively more elastic

  2. perfectly elastic

  3. perfectly inelastic

  4. relatively Inelastic

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Correct Option: A

The formula for calculating price 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. $\displaystyle E _s = \frac{percentage \,\, change \,\, in \,\, price}{percentage \,\, change\,\, in \,\, quantity\,\, demanded}$

  2. $\displaystyle E _s = \frac{percentage \,\, change \,\, in \,\, quantity\,\, demanded }{percentage \,\, change\,\, in \,\, quantity\,\, supplied}$

  3. $\displaystyle E _s = \frac{percentage \,\, change\,\, in \,\, quantity\,\, supplied }{percentage \,\, change\,\, in \,\, price}$

  4. $\displaystyle E _s = \frac{ percentage \,\, change \,\, in \,\, quantity \,\, demanded }{percentage \,\, change\,\, in \,\, price}$

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Correct Option: C

The supply is said to be ____________, when a very insignificant change in price leads to an infinite change in quantity supplied.

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

  1. relatively more elastic

  2. perfectly elastic

  3. perfectly inelastic

  4. relatively Inelastic

Show answer
Correct Option: B

The supply is ________, when a greater change in price leads to smaller change in quantity supplied.

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

  1. relatively more elastic

  2. perfectly elastic

  3. perfectly inelastic

  4. relatively inelastic

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Correct Option: D

Relatively in inelastic 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: B

Elasticity of supply refers to the degree of responsiveness of supply of a good to changes in its.

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

  1. Demand

  2. Price

  3. Cost of production

  4. State of technology

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Correct Option: B
Explanation:

 Elasticity of supply measures the degree of responsiveness of quantity supplied to a change in own price of the commodity. It is also defined as the percentage change in quantity supplied divided by percentage change in price

The elasticity of supply is defined as the.

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

  1. Responsiveness of the quantity supplied of a good to a change in its price

  2. Responsiveness of the quantity supplied of a good without in its price

  3. Responsiveness of the quantity demanded of a good to a change in its price

  4. Responsiveness of the quantity demanded of a good without change in its price

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Correct Option: A
Explanation:

1:The elasticity of supply is the responsiveness of the quantity supplied and the change in price.
2:The elasticity of supply is measured as the ratio of proportionate change in the quantity supplied to the proportionate change in price.

Elasticity of supply is measured by dividing the percentage change in quantity supplied of a good by __________.

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

  1. Percentage change in income

  2. Percentage change in quantity demanded of goods

  3. Percentage change in price

  4. Percentage change in taste and preference

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Correct Option: C
Explanation:

Es$=\dfrac{\%\Delta Q}{\%\Delta P}$.
The elasticity of supply is measured by dividing the percentage change in quantity supplied of a good by the Percentage change in price


Elasticity of supply is zero 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. Perfectly inelasticity supply

  2. Perfectly elastic supply

  3. Imperfectly elastic supply

  4. None of the above

Show answer
Correct Option: A
Explanation:

Elasticity of supply is zero means perfectly inelastic supply $(Es = 0)$ and shape of curve will be vertical.