SUPPLY AND ELASTICITY OF SUPPLY MCQ CLASS 12

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SUPPLY AND ELASTICITY OF SUPPLY FOR 12TH ICSE BOARD, SUPPLY AND ELASTICITY OF SUPPLY Objective questions for 12TH ICSE Board, SUPPLY AND ELASTICITY OF SUPPLY 12TH ICSE MCQ FOR ECONOMICS , SUPPLY AND ELASTICITY OF SUPPLY FOR 12TH ICSE BOARD Mock Test for 12th Class ICSE Board.

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Table of Contents

SUPPLY AND ELASTICITY OF SUPPLY MCQ CLASS 12

1. In economics, supply means-
(a) quantity of a commodity which is actually offered for sale at a given price in a given period of time
(b) quantity of a commodity which is offered for sale at a particular price
(c) stock of commodity which is sold at a give price
(d) none of the above

2. Which of the following is not true in case of supply?
(a) Supply is a flow concept
(b) Supply is a stock concept
(c) Supply is directly related to price
(d) Market supply is horizontal summation of the individual supply curves

3. When price rises, quantity supplied-
(a) expand
(b) falls
(c) increases
(d) is unchanged

4. Which of the following statement is correct?
(a) Supply does not depends on Govts, tax policy
(b) Stock is the quantity brought to market for sale
(c) There is difference between stock and supply
(d) Stock and supply are always equal

5. The supply of good refers to-
(a) actual production of a good
(b) total stock of the good
(c) stock available for sale
(d) amount of the good offered for sale at a particular price per unit of time

6. According to law of Supply-
(a) there is positive relation between supply and price
(b) there is negative relation between supply and price
(c) there is constant relation between supply and price
(d) there is no relation between supply and price

7. ______ shows the quantity of goods a producer or seller wishes to sell at a given price level
(a) Average Product Curve
(b) Marginal Product Curve
(c) Supply Curve
(d) Total Product Curve

8. The supply curve slopes-
(a) Slopes downward from left to right
(b) Slopes upwards from left to right
(c) Slopes upward from right to left
(d) None of the above

9. Graphical presentation of supply curve of an individual firm in the market is called-
(a) producer’s demand curve
(b) consumers demand curve
(c) individual supply curve
(d) market supply curve

10. When the state of technology improves, supply
(a) fall
(b) contract
(c) increase
(d) expand

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11. When government imposes taxes, supply will
(a) expand
(b) increase
(c) contract
(d) decrease

12. Movement along the supply curve occurs due to-
(a) rise in price of the commodity
(b) fall in price of the commodity
(c) factors other than own price of the commodity
(d) both ‘a’ and ‘b’

13. Supply curve shifts rightward due to-
(a) increase in the number of firms
(b) fall in the price of factors of production
(c) new and better technology
(d) all the above

14. Expansion of supply takes place due to-
(a) change in goal of the firm
(b) rise in price of the commodity
(c) number of firms
(d) technique of production

15. If producer expects an increase in price of goods in the near future, then current supply will:
(a) fall
(b) rise
(c) remain constant
(d) become zero

16. When more units of the good are supplied at a higher price, it is called-
(a) Contraction of supply
(b) Change in supply
(c) Extension in supply
(d) Increase in supply

17. When supply price increases in the short run, the profit of the producer-
(a) Increases
(b) Decreases
(c) Remains constant
(d) Decreases a bit

18. The long-run supply curve of a diminishing cost industry is-
(a) downward sloping to right
(b) upward sloping to left
(c) horizontal
(d) vertical

19. The law of supply does not apply to-
(a) agriculture goods
(b) industrial goods
(c) perishable goods
(d) both ‘a’ and ‘c’

20. When supply falls due to factors other than own price of the commodity, it means-
(a) contraction of supply
(b) decrease in supply
(c) extension of supply
(d) none of these

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21. In case of contraction of supply, there is-
(a) an upward movement on supply curve
(b) shift of supply curve to the right
(c) downward movement on supply curve
(d) shift to supply curve to the left

22. In case of increase in supply, there is –
(a) an upward movement on supply curve
(b) shift of supply curve to the right
(c) downward movement on supply curve
(d) shift to supply curve to the left

23. Imposition of a unit tax, shifts the supply curve-
(a) to the right
(b) to the left
(c) to the right as well
(d) none of these as to the left

24. Due to incentives like tax holiday, subsidies which reduces the cost of production, the supply quantity will-
(a) Increase
(b) Decrease
(c) Remain Constant
(d) Become zero

25. In case of failure of rains, floods, etc. the supply of agricultural goods will-
(a) Increase
(b) Decrease
(c) Remain constant
(d) Become zero

26. The percentage change in quantity supplied due to percentage in price is called-
(a) Expansion of supply
(b) inelastic supply
(c) elasticity of supply
(d) changes in supply

27. Elasticity of supply refers to the responsiveness of quantity supplied to changes in its-
(a) Demand
(b) Price
(c) Cost of production
(d) State of technology

28. When supply curve is a vertical straight line, it indicates _____ supply
(a) unitary elastic
(b) perfectly elastic
(c) perfectly inelastic
(d) relatively elastic

29. A straight line supply curve passing through origin forming 50° indicates-
(a) E =0
(b) E_s= 1
(c) E_s > 1
(d) E_s < 1

30. Elasticity of supply for a positively sloped supply cure that starts from price axis is –
(a) zero
(b) greater than one
(c) less than one
(d) equal to one

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31. In case of perfectly elastic supply the supply curve is-
(a) rising
(b) vertical
(c) falling
(d) horizontal

32. Supply is relatively elastic in-
(a) very short period
(b) short period
(c) long period
(d) both ‘b’ and ‘c’

33. When supply curve is parallel to X-axis, elasticity of supply is-
(a) zero
(b) infinity
(c) unity
(d) negative

34. If the co-efficient of elasticity of supply is 0.6, the supply is-
(a) perfectly inelastic
(b) inelastic
(c) perfectly elastic
(d) elastic

35. When upward sloping straight line curve shoots up from quantity axis, it implies-
(a) E_s < 1
(b) E_s > 1
(c) E_s = 1
(d) E_s = 0

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36. Which of the above curves unitary elastic demand?

(a) Curve A
(b) Curve B
(c) Curve C
(d) all the above

37. Elasticity of supply for a positively sloped supply that shoots from origin
(a) E_s < 1
(b) E_s > 1
(c) E_s = 1
(d) E_s = ∞

38. The supply of perishable goods is-
(a) relatively elastic
(b) relatively inelastic
(c) perfectly elastic
(d) none of the above

39. The supply function of a commodity is given by – Q = 20 + 3 Px. If the price is ₹ 6, the quantity supplied is-
(a) 35 units
(b) 38 units
(c) 40 units
(d) 42 units

Refer the following supply function to answer Q. Nos. 40 to 42
Q_s = -10 + 2p

40. How much quantity is supplied at a price of ₹ 10?
(a) 10 units
(b) 8 units
(c) 12 units
(d) 6 units

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41. At which price, the supply would be zero?
(a) ₹ 1
(b) ₹ 3
(c) ₹ 4
(d) ₹ 5

42. Calculate the price at which, the firm is willing to supply 100 units
(a) ₹ 55
(b) ₹ 50
(c) ₹ 45
(d) ₹ 40

43. When price of a commodity falls by 20%, the quantity supplied falls by 25%, the price elasticity of supply is-
(a) 0.75
(b) 1.25
(c) 1.50
(d) 1.75

44. A vegetable vendor sells 80 quintals of potatoes at a price of ₹ 4 p. kg. The elasticity of supply of potatoes is known to be 2. How much quantity will he sell at ₹ 5 p. kg.?
(a) 100 quintals
(b) 110 quintals
(c) 120 quintals
(d) 130 quintals

45. When the price of a good rises from ₹ 15pu to ₹ 19pu, its quantity supplied increases from 75 units to 95 units. The price elasticity of supply is-
(a) 1
(b) 2
(c) 3
(d) 4

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46. Total revenue of a firm rises from ₹ 50 to ₹ 100 when the price rises from ₹ 5 pu to ₹ 10 pu. The co-efficient of E_s =
(a) 0
(b) 0.8
(c) 1
(d) 1.2

47. The price of a commodity doubles, to its response the quantity supplied increases 4 times of orig¬inal quantity supplied. The co-efficient of price elasticity of supply is-
(a) 1
(b) 2
(c) 3
(d) 4

48. A price of ₹ 10 p.u. the quantity supplied is 500 units. If the price falls by 10% and quantity supplied falls to 400 units, the co-efficient of price elasticity of supply is-
(a) 1
(b) 2
(c) 3
(d) 4

49. Market forces refer to-
(a) Demand
(b) Supply
(c) Both ‘a’ and ‘b’
(d) Neither ‘a’ nor ‘b’

50. Supply is the-
(a) limited resources that are available with the seller
(b) cost of producing a good
(c) entire relationship between the quantity supplied and the price of good
(d) willingness to produce

51. In a very short period the supply-
(a) can be changed
(b) cannot be changed
(c) can be increased
(d) none of the above

52. If the demand is more than supply, then the pressure on price will be-
(a) upward
(b) downward
(c) constant
(d) none of the above

53. A perfectly inelastic supply curve shooting up from X-axis shows-
(a) constant supply at higher price
(b) constant supply at lower price
(c) constant supply at zero price
(d) all the above

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