Question

1. Raj is a supplier of coffee and selling 20 units at a price of Rs. 15 each. With the change in the price of Coffee to Rs.20, the supplier decides to make changes in the units of coffee. Decide his sale of coffee by answering the following questions:                                                        (1*3 = 3 Marks)

1. When price of a commodity increases its supply will:

(a) Increase

(b) Expansion in supply

(c) Decrease  

(d) Contraction in supply


2. When two variables change in the same direction, then such a correlation between them is called:

(a) Negative

(b) Positive

(c) No correlation

(d) All of these


3. Explain the relation between price and quantity supplied through a scattered diagram.

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Answer 1

Answer: 1) D. Contraction in Supply .

2) B. Positive

3) ??

Explanation:

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