Tag: economics

Questions Related to economics

In a situation of perfectly elastic supply, price of the commodity tends to remain constant, no matter demand increases or decreases.

  1. True

  2. False


Correct Option: A
Explanation:

True.
The price will remain unchanged under a perfectly elastic supply curve, no matter demand increases or decreases. This is because supply responds proportionately to the increase or decrease in demand, i.e., it only changes on the quantity axis, while, it is static on the price axis at a given price.

The responsiveness of the sellers to a particular change in the price of the commodity is termed as ___________. 

  1. elasticity of supply

  2. theory of demand

  3. theory of supply

  4. none of the above


Correct Option: A

The concept of elasticity of supply is a parallel concept to the concept of __________.

  1. theory of demand

  2. theory of supply

  3. elasticity of demand

  4. none of the above


Correct Option: C

The elasticity of supply is _________ when the change in the amount of supply is in exact proportion to the change in price.

  1. perfectly elastic

  2. perfectly inelastic

  3. unitary

  4. less elastic


Correct Option: C

A supply curve passing through any point on X axis (quantity) will have elasticity __________.

  1. less than 1

  2. more than 1

  3. just one

  4. zero


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 the price rises to Rs. 15,000 he is prepared to supply 1,500 pieces. The elasticity of supply of the TV set is _______.

  1. 1

  2. 2

  3. 0.75

  4. 1.4


Correct Option: B

A 6% decrease in price has caused 9% decrease in quantity supplied, the price elasticity of supply will be _________.

  1. 1.33

  2. -1.33

  3. 1.5

  4. -0.66


Correct Option: C

A 6% increase in price has caused 8% increase in quantity supplied, the price elasticity of supply will be _________.

  1. 1.33

  2. -1.33

  3. 0.66

  4. -0.66


Correct Option: A

The supply function is given as: Q= -100 + 10P.

Find the elasticity using point method, when price is Rs. 15.

  1. 4

  2. -3

  3. -5

  4. 3


Correct Option: D

Who is the pioneer of "White revolution" in India?

  1. Swaminathan

  2. Varghese Kurien

  3. Dhiru Bhai Ambani

  4. S.K. Birla


Correct Option: A