MCQs - Supply and Elasticity of Demand Commerce Notes | EduRev

Crash Course of Micro Economics -Class 12

Commerce : MCQs - Supply and Elasticity of Demand Commerce Notes | EduRev

The document MCQs - Supply and Elasticity of Demand Commerce Notes | EduRev is a part of the Commerce Course Crash Course of Micro Economics -Class 12.
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Q.1 Exceptions to the law of supply are:
(a) Perishable products
(b) Products which cannot be stored
(c) Goods having social distinction
(d) All of these
Ans: D

Q.2 
Slope of the supply curve measures the rate at which:

(a) Quantity demanded changes with respect to its price   

(b) Quantity supplied changes with respect to its price

(c) Quantity produced changes with respect to its price 

(d) None of the above
Ans: B

Q.3 Government decided to increase excise duty on the production of a given good.  What will be its impact on the supply of the given good?

(a) Supply of good will increase
(b) Supply of good will decrease
(c) There will be no impact on the supply of good
(d) None of the above.

Ans: B

Q.4 
In the long period, the supply for a commodity is:
(a) Perfectly Inelastic
(b) Less elastic
(c) Highly Elastic

(d) Perfectly Elastic
Ans: C

Q.5 
All the supply curves, which pass through the origin are :

(a) Highly elastic
(b) Unitary elastic
(c) Perfectly inelastic
(d) Less elastic
Ans: B

Q.6 
Which one of the following is not a essential element of supply ?

(a) Price of the commodity
(b) Period of time
(c) Willingness to buy
(d) Quantity

Ans: C

Q.7 
Market period is a time period during which:

(a) Supply cannot be adjusted to meet changed demand conditions.

(b) Supply can be fully adjusted to meet changed demand conditions.

(c) Change in supply is limited to available capacity.

(d) Any change in supply is possible.

Ans: A

Q.8 
A straight line supply curve cuts the Y-axis in its negative range.  What is the elasticity of supply 
(a) Highly elastic
(b) Unitary elastic
(c) Less elastic
(d) Perfectly Inelastic Supply
Ans: C

Q.9 In case of less elastic supply, supply curve:
(a) Makes an intercept on the positive X-axis
(b) Is a vertical straight line parallel to the Y-axis
(c) Makes an intercept on the positive Y-axis
(d) Is a horizontal straight line parallel to the X-axis
Ans: A

Q.10 
The supply function of a product X is given as: Sx = 6 Px + 3, where Px stands for price. The supply at price of Rs. 5 will be:
(a) 18
(b) 9
(c) 33  

(d) 14
Ans: C

Q.11 
Which of the following factors will not cause an increase in supply ?

(a) Fall in the price of factor inputs.
(b) Improved production technology.
(c) Fall in the price of the goods.
(d) Reduced taxes on the goods.
Ans: C

Q.12 
The co-efficient of Elasticity of Supply is a positive number. This statement is 

(a) True
(b) False
(c) Nothing can be interpreted

(d) None of these
Ans: A

Q.13 
In the book market, the supply of books will decrease if any of the following occurs except:
(a) a decrease in the number of book publishers
(b) a decrease in price of a book

(c) an increase in the expected future price of a book
(d) an increase in the price of the paper
Ans: B

Q.14 
Which of the following statement is correct ?
(a) There is difference between supply & stock
(b) Supply doesn’t depend on govt’s tax policy
(c) Stock is quantity which comes to market for sale
(d) Stock and supply are always equal
Ans: A

Q.15 
Imposition of GST, shifts the supply curve:
(a) to the right
(b) to the left

(c) to the right as well as to the left
(d) none of these
Ans: B

Q.16 
What do we call a quantity which a seller is ready to supply at a given time and at a given price ?
(a) Supply
(b) Elasticity of supply
(c) Quantity supplied
(d) Quantity of stock
Ans: C

Q.17 
Supply during very short period would be ..................... ?
(a) Perfectly Elastic
(b) Perfectly Inelastic
(c) Elastic
(d) None of thes
Ans: B

Q.18 
What is relation between stock and supply ............... ?

(a) Supply can be equal to stock
(b) Supply can be less that stock
(c) Supply can never exceed stock
(d) All are correct.
Ans: D

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