Q. Which of the following metrics is not a constant factor while moving upwards along the supply curve? The price of the commodityThe number of sellersExpected future pricesCost of the resources used for producing that commodity Answer: The price of the commodity

Q. Because of increasing marginal costs, most supply curves ________. Have a positive slopeHave a negative slopeAre horizontalAre 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 rightwardThe demand curve for the product shifts leftwardThe supply curve for the product shifts rightwardThe supply curve for the product shifts ...

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

Q. ______ leads to an increase in the supply of a commodity without a change in its price. Rise in supplyContraction in supplyExpansion in supplyFall 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 consumersA change in the price of that productAn increase in the income of its consumersNone 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 pointConsumers see a positive relationship between price and qualityExpansion of production leads to the use of inferior inputsNone of the above Answer: The ...

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 productEffective advertising campaign by producers of a substitute goodA reduction in the price of the raw material for that productA widely publicised ...

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 materialsIntroduction of a tax on that product by the governmentIntroduction of a new technique that makes the production of that commodity cheaperAn ...

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 elasticLess elasticPerfectly inelasticPerfectly ...

Q. When the demand for a product is perfectly inelastic, a price increase will result in __________. A decrease in quantity demanded of the productNo change in the total income from a productAn increase in the total income from a productA reduction in the total income from a product Answer: ...

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. DownwardRightwardLeftwardNone of the above Answer: Leftward