100 MCQS of Supply Microeconomics class 11
Looking for important MCQs of supply chapter with answers and explanation of Microeconomics class 11 CBSE, ISC, and other State Boards.
Multiple Choice Questions of supply chapter with answers of Microeconomics class 11
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In the long period, the supply for a commodity is:
a) Perfectly Inelastic
b) Less Elastic
c) Highly Elastic
d) Perfectly Elastic
Ans – c)
All the supply curves, which pass through the origin are:
a) Highly elastic
b) Unitary elastic
c) Perfectly inelastic
d) Less elastic
Ans – b)
Which one of the following is an essential element of supply?
a) Price of the commodity
b) Period of time
c) willingness to buy
d) Quantity of the commodity
Ans – a), b), d)
Which one of the following is not the result of an increase in the price of factors of production?
a) Rightward shift in the supply curve
b) Leftward shift in the supply curve
c) Expansion in supply
d) Contraction in supply
Ans – a), c), d)
The market period is a time period during which:
a) Supply can not be adjusted to meet changed demand conditions
b) Supply can be fully adjusted to meet changed demand conditions
c) Change in supply is limited to available capacity
d) Any change in supply is possible
Ans – a)
In the case of ____________, supply falls at the same price.
a) Decrease in supply
b) Contraction in supply
c) Increase in supply
d) Expansion in supply
Ans – a)
In the case of __________, supply curve is a vertical straight line parallel to the Y-axis.
a) Perfectly Elastic Supply
b) Unitary Elastic Supply
c) Perfectly Inelastic Supply
d) Less Elastic Supply
Ans – c)
Which one of the following is not a determinant of Individual supply?
a) Price of the given commodity
b) Taxation Policy
c) Means of Transportation and Communication
d) Number of Firms
Ans – c), d)
A straight line supply curve cuts the Y-axis in its negative range. What is the elasticity of supply?
a) Highly elastic
b) Unitary elastic
c) Less elastic
d) Perfectly inelastic Supply
Ans – c)
Change in the price of the given commodity will lead to:
a) Expansion in supply
b) Either a) or c)
c) Contraction in Supply
d) Neither a) nor b)
Ans – b)
Price Elasticity of Supply of good is 2. It shows that:
a) When Price falls by 1%, supply falls by 2%
b) When the price rises by 1%, supply rises by 2%
c) When supply falls by 1%, price rises by 2%
d) Either a) or b)
Ans – d)
The elasticity of supply is said to be perfectly inelastic when:
a) Supply doesn’t change with change in price
b) There is an infinite supply at a particular price
c) When percentage change, is supply is equal to the percentage change is price
d) When percentage change is supply is more than percentage change is price
Ans – a)
Which of the following statement is valid with respect to the ‘Law of supply’?
a) Indicates the magnitude of change in supply due to change in price
b) States one-sided between price and quantity supplied
c) Establishes proportional relationship between change in price and change in supply
d) States the direct relationship between price and quantity supplied
Ans – b), d)
Supply is said to be unitary elastic, when:
a) Supply curve is a straight line passing through the origin
b) Supply curve makes an intercept on the positive Y-axis
c) Supply curve makes an intercept on the positive X-axis
d) Supply curve is a horizontal straight line parallel to the X-axis
Ans – a)
Due to the installation of a machine with the latest technology, the cost of production has decreased. It
will lead to:
a) Expansion in supply
b) Increase in supply
c) Contraction in supply
d) Decrease in supply
Ans – b)
The market supply of a commodity is affected by:
a) the State of Technology
b) Number of firms
c) Government policy
d) All of the above
Ans – d)
In case of less elastic supply, supply curve:
a) Makes an intercept on the positive X-axis
b) is a vertical straight line parallel to the Y-axis
c) Makes an intercept on the positive Y-axis
d) is a horizontal straight line parallel to the X-axis
Ans – a)
“Increase in Supply” of a product is caused by:
a) Improvement in Technology
b) Fall in the prices of other goods
c) Fall in Prices of Factors of Production
d) All of these
Ans – d)
If quantity supplied increases by 60% due to 50% increase in price, then elasticity of Supply is:
a) (-) 1.2
b) (+) 1.2
c) (-) 0.83
d) (+) 0.83
Ans – b)
The supply function of a product X is given as Sx = 6Px + 3, where Px stands for price. At what
price the firm will be willing to supply 27 pieces in the market?
a) ₹2
b) ₹5
c) ₹3
d) ₹4
Ans – d)
The supply function of a product X is given as Sx = 6Px + 3, where Px stands for price. If there
are 1,000 firms in the market, then market supply for the product at a market price of ₹4 will be:
a) 20,000 units
b) 23,000 units
c) 27,000 units
d) 21,000 units
Ans – c)
Which of the following measures of price elasticity shows elastic supply?
a) 0
b) 0.5
c) 1
d) 1.5
Ans – d)
Which of the following does not cause a shift of the supply curve of a good?
a) Price of input
b) Price of the good
c) Goods and Services Tax
d) Subsidy
Ans – b)
If the supply curve is a straight line parallel to the vertical axis (Y-axis), the supply of the
good is called as ____________ .
a) unitary Elastic Supply
b) Perfectly Elastic Supply
c) Perfectly Inelastic Supply
d) Perfectly Elastic Demand
Ans – c)
Which of the following statement is correct with respect to supply?
a) Price and quantity have a direct relationship
b) Supply curve rises from left to right
c) Supply is affected by many factors
d) All the above
Ans – d)
