MCQs Micro Economics in English, Supply Theory

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Micro Economics    

Supply Theory

The amount of supply due to an increase in the price of an item

decreases	increases
persists	all

Supply is the function of:

income	money
price	none

The supply curve is usually.

horizontal	vertical
negative	positive

Change in supply and change in quantity supplied are the terms:

separate	same
both	none

If the quantity of supply changes, the supply curve:

changes to the right	does not change
changes to the left	everything possible

If supply of a goods changes, the supply curve

shifts to the right	shifts to the left
both	none

There is direct relationship between the price of goods and their supply in:

law of demand	law of supply
both	none

Law of supply is the relationship between price and supply.

straight

inverse

The supply curve is positive.

always	sometimes
in general	never

Supply refers to the quantity of an item that is offered at a particular time and price.

for sale	to buy
for use	none

The change in supply due to price increase is called change.

contraction	extension
both	none

If the changes both in price and supply are equal, the elasticity will be.

more than unit	less than unit
equals to unit	none

If the changes in supply is greater than the change in price, the elasticity will be.

more than unit	less than unit
equals to unit	none

If the changes in supply is less than the change in price, the elasticity will be.

more than unit	less than unit
equals to unit	none

The secured price of an item refers to the price at which the seller:

wish to sale	wish to store
doesn’t wish to sale	doesn’t wish to store