| 1 |
Perfectly inelastic supply curve is: |
- A. Parallel to vertical axis
- B. Parallel to horizontal axis
- C. Rises upward to the right
- D. Falls downward to the right
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| 2 |
Equilibrium |
- A. is a state that can never be achieved in economics
- B. is an important idea for predicting economics changes
- C. is a stable condition
- D. is an unstable condition
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| 3 |
In case of a fall in supply. |
- A. Quantity supplied falls at the same price.
- B. Quantity supplied rises at the same price.
- C. Quantity supplied remain at the lower price.
- D. None of the three
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| 4 |
Which one will be termed as supply of a product. |
- A. One tone potato in cold storage
- B. One ton rice offered for sale in market
- C. One ton rice brought for sale in market at a certain price.
- D. None of the three
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| 5 |
An increases in the price of mutton provides information which |
- A. tells consumers to buy more mutton
- B. tells consumers to buy more chicken
- C. tells producers to produce more mutton
- D. b and c of above
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| 6 |
Demands and supply curves cross at |
- A. always at 60 degree
- B. at 90 degree
- C. at equal angle
- D. at any angle
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| 7 |
If we know that quantities bought and sold are equal, we can conclude that |
- A. quantities demanded and supplied are also equal
- B. the market is in equilibrium
- C. there will be no tendency for a price change
- D. all of the above
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| 8 |
A change in price brings in quantity supplied. it will be. |
- A. Rise in supply
- B. Contraction of supply
- C. Fall in supply
- D. Extension of supply
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| 9 |
If equilibrium price rises but equilibrium quantity is unchanged, the cause is |
- A. supply and demand both increase equally
- B. supply and demand decrease equally
- C. supply curve is vertical and demand increases
- D. supply increases and demand is same
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| 10 |
One of the following is not an assumption of law of supply. |
- A. Political system should not changed
- B. Cost of production should not changed
- C. Production technique should not changed
- D. Cost of raw material should not changed
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