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Published on: 29/08/2019
Supply
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Questions + Answers key
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1.
What is the shape of a supply curve?
2.
What effect does an decrease in input price has on the supply of the commodity?
3.
State any two factors affecting elasticity of supply.
4.
Define market supply.
5.
Define supply.
6.
A horizontal supply curve parallel to the quantity axis implies that the elasticity of supply is:
Zero
Infinite
Equal to one
Greater than zero but less than one.
7.
Elasticity of supply refers to the degree of responsiveness of supply of a good to changes in its:
Demand
Price
Cost of production
State of technology
8.
An increase in the supply of a good is caused by:
Improvements in its technology
Fall in the prices of other goods
Fall in the prices of factors of production.
All of them.
9.
The supply of a good refers to:
Actual production of the good
Total existing stock of the good
Stock available for sale
Amount of the good offered for sale at a particular price per unit of time.
10.
A vertical supply curve parallel to Y-axis implies that the elasticity of supply is:
Zero
Infinity
Equal to one
Greater than zero but less than infinity.
11.
When government imposes more unit tax, supply of the concerned good increases?
12.
When price of factor input falls, supply curve shifts rightward.
13.
Ceteris paribus, if price rises, quantity supply of goods will fall
14.
If there is increase in quantity supplied, supply curve shifts rightwards?
15.
If there is decrease in supply, producer moves downward along the same supply curve?
1.
( )
Supply curve is a positively shaped upward sloping curve.
2.
( )
Supply will increase
3.
( )
(i) Nature of commodity;
(ii) Time period
4.
( )
Market supply refers to the quantity of a commodity that all firms are willing and able to offer for sale at each possible price during a given period of time.
5.
( )
Supply refers to the quantity of a commodity that a firm is willing and able to offer for sale, at each possible price during a given period of time.
6.
(b)
Infinite
7.
(b)
Price
8.
(d)
All of them.
9.
(d)
Amount of the good offered for sale at a particular price per unit of time.
10.
(a)
Zero
11.
(b)
12.
(a)
13.
(b)
14.
(b)
15.
(b)
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