Q. Because of increasing marginal costs, most supply curves ________. Have a positive slope Have a negative slope Are horizontal Are vertical Answer: Have a positive slope

Q. If the income of a consumer increases or the price of a complementary good falls, then the __________. The demand curve for the product shifts rightward The demand curve for the product shifts leftward The supply curve for the product shifts rightward The supply curve for the product shifts leftward Answer: The demand curve

Q. If price changes by 1% and supply changes by 2%, then the supply is ______. Static Indeterminate Inelastic Elastic Answer: Elastic

Q. ______ leads to an increase in the supply of a commodity without a change in its price. Rise in supply Contraction in supply Expansion in supply Fall in supply Answer: Rise in supply

Q. Which of the following scenarios will not lead to a change in demand for a product? A change in the tastes of its consumers A change in the price of that product An increase in the income of its consumers None of the above Answer: None of the above

Q. A firm’s supply curve is on an upward slope because ______. The production costs of additional units of output will rise beyond a point Consumers see a positive relationship between price and quality Expansion of production leads to the use of inferior inputs None of the above Answer: The production costs of additional units

Q. Which of the following scenarios will not shift the demand curve for a particular product? A change in the income of the consumers of that product Effective advertising campaign by producers of a substitute good A reduction in the price of the raw material for that product A widely publicised study that says the

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