Elasticity of Supply

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  • Q1

    Price elasticity of supply measures the percentage change in quantity supplied of a good in response to some percentage change in

    Marks:1
    Answer:

    price of the good.

    Explanation:

    Percentage change in quantity supplied is divided by the percentage change in price to derive the price elasticity of supply. It shows the responsiveness to change in quantity supplied due to change in price.

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  • Q2

    Price elasticity of supply measures the percentage change in quantity supplied of a good in response to some percentage change in

    Marks:1
    Answer:

    price of the good.

    Explanation:
    Percentage change in quantity supplied is divided by the percentage change in price to derive the price elasticity of supply. It shows the responsiveness to change in supply due to change in price.
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  • Q3

    The price elasticity of the supply curve passing through the origin is

    Marks:1
    Answer:

    equal to one.

    Explanation:
    Price elasticity of the supply curve passing through the origin is always equal to one. It indicates that the change in price is equal to the change in supply.
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  • Q4

    The elasticity of supply is equal to zero when supply curve is

    Marks:1
    Answer:

    parallel to y-axis.

    Explanation:
     Supply curve is parallel to y axis when the elasticity is zero. This indicates that supply does not change at all due to change in the price of the commodity to any extent.
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  • Q5

    Degree of responsiveness of change in quantity supplied due to change in price is called

    Marks:1
    Answer:

    price elasticity.

    Explanation:
    Price elasticity is the degree of responsiveness of change in quantity supplied due to change in price. We can measure the elasticity of supply by different methods.

       
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