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

Q. If the elasticity of supply is greater than one, the supply curve would be _______. Touching y-axisPassing through the originVerticalHorizontal Answer: Touching y-axis

Q. Would an increase in demand for a product cause the supply curve to shift in any direction? No effect on supplyChange in the slope of a supply curveThe supply curve will move to the rightThe supply curve will move to the left Answer: No effect on supply