Question

Fill in the blanks with appropriate words:
(i) Supply of a commodity ......................., when its price increases.
(ii) A firm having an objective of maximization of profit will supply .......................
quantity of a commodity at a higher price.
(iii) If a firm produces two goods X and Y with given resources and price
of good Y falls, supply of good X will .......................
(iv) A fall in wage rate will lead to ....................... in supply of a commodity.
(v) An increase in excise duty on production of T.V. sets will .......................
the supply of T.V. sets.

Answer 1

Answer:

i) Increases

ii) Increases

iii) Falls

iv) Increases

v) Decrease

Answer 2

Explanation:

i) 'Supply of a commodity' increase when its 'price increases'.

(ii) A firm having an 'objective' of 'maximization of profit' will supply an increased quantity of a 'commodity' at a 'higher price'.

(iii) If a firm 'produces two goods' X and Y with 'given resources and price' of good Y falls, the 'supply of good X' will fall.

(iv) A 'fall in the wage rate' will lead to 'increase' in the 'supply of a commodity'.

(v) An 'increase in excise duty' on 'production of T.V. sets' will 'decrease the supply of T.V. sets."