In case of increase in supply, we move-

To right on another supply curve

An upward sloping straight line supply curve shooting from X-axis indicates that-

Elasticity of supply is less than one

In case of Es > 1, the supply curve is-

A straight line starting from Y-axis

Which of the following statements is correct?

There is difference between supply and stock

In case of contraction of supply, we move-

From upper point to lower point

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Chapter 2- Theory of Demand and Supply{ SUPPLY} QUIZ 4

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Questions 16

Answers

1
Imposition of a unit tax, shifts the supply curve-
To the left
To the right as well as to the left
None of these
To the right
2
The entire schedule showing various quantities offered for sale at different possible prices of the good is called-
Individual supply
Quantity supplied
Supply
None of the above
3
Movement along the supply curve occurs due to-
Factors other than own price of the commodity
Increase in own price of the commodity
Both (a) and (b)
Decrease in own price of the commodity
4
In case of increase in supply, we move-
To right on another supply curve
From lower point to upper point of the supply curve
To left on another supply curve
From upper point to lower point of the supply curve
5
Supply is more elastic in case of-
Both (b) and (c)
Very short period
Short period
Long period
6
Expansion of supply occurs due to change in-
Goal of the firm
Technique of production
Number of firms
Own price of the commodity
7
An upward sloping straight line supply curve shooting from X-axis indicates that-
Elasticity of supply is equal to zero
Elasticity of supply is greater than one
Elasticity of supply is equal to one
Elasticity of supply is less than one
8
When supply curve is parallel to X-axis, elasticity of supply is-
Infinity
Zero
Negative
Unity
9
When supply falls due to factors other than own price of the commodity, it indicates-
Decrease in supply
Contraction of supply
Extension of supply
None of these
10
The law of supply does not apply to-
Perishable products
Both(a) and (c)
Agricultural products
Industrial products
11
In case of Es > 1, the supply curve is-
A horizontal straight line parallel to X-axis
A straight line starting from Y-axis
A straight line starting from X-axis
A vertical straight line parallel to Y-axis
12
A straight line supply curve passing through the origin indicates-
Es > 1
Es = 0
Es = 1
Es < 1
13
Which of the following statements is correct?
Supply does not depend on government’s tax policy
Stock and supply are always equal
Stock refers to the quantity which comes to market for sale
There is difference between supply and stock
14
In case of contraction of supply, we move-
Both (b) and (c)
To the right on the other supply curve
From lower point to upper point
From upper point to lower point
15
Subsidy on the production of a commodity causes-
No change in supply
Both (a) and (b)
Increase in supply
Decrease in supply
16
Increase in quantity supplied due to rise in price is called-
Increase in supply
Decrease in supply
None of these
Extension of supply

Chapter 2- Theory of Demand and Supply{ SUPPLY} QUIZ 4 Flashcards | StudBud