Q. If the market supply curve for a product shifts rightwards, what is the best possible explanation for this shift? Increase in the price of raw materials Introduction of a tax on that product by the government Introduction of a new technique that makes the production of that commodity cheaper An advertising campaign that is […]
Q. In May 2019, a firm was providing 5000 kg of sugar at a market price of Rs. 30 per kg. But in June 2019, the supply of sugar decreased to 4500 kg at a market price of Rs. 20 per kg. This change shows that the supply of sugar is _____. More elastic Less
Q. When the demand for a product is perfectly inelastic, a price increase will result in __________. A decrease in quantity demanded of the product No change in the total income from a product An increase in the total income from a product A reduction in the total income from a product Answer: An increase
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Q. In a particular year, the farmers experienced dry weather. If all other factors remain the same, the supply curve of wheat for farmers will shift to the ________ direction. Downward Rightward Leftward None of the above Answer: Leftward
Q. If the elasticity of supply is greater than one, the supply curve would be _______. Touching y-axis Passing through the origin Vertical Horizontal Answer: Touching y-axis
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Q. Would an increase in demand for a product cause the supply curve to shift in any direction? No effect on supply Change in the slope of a supply curve The supply curve will move to the right The supply curve will move to the left Answer: No effect on supply
Q. In case the price of a product and the total revenue from that product move in the same direction, then the demand is ____________. Perfectly elastic Inelastic Elastic Unrelated Answer: Inelastic
Q. Which of the following is not a cause of the shift in demand for a product? Change in the price of substitutes Change in the income of a consumer Change in the price of a product None of the above Answer: Change in the price of a product
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Q. When the elasticity of demand for a commodity is very low, it shows that the product ________. Has little importance in the total budget Is a luxury Is a necessity None of the above Answer: Is a necessity
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Q. When the price of a product falls by 10% and its demand rises by 30%, then the elasticity of demand is _________. 13 3 10 30 Answer: 3
