Question

Multiple Choice Questions
1. What is constant in the law of supply?
(a) Price of related goods
(6) State of technology
(c) Cost of production
(d) All of the above
2. When supply curve is upward sloping, its slope is
(a) Positive
(6) Negative
() First positive then negative
(d) Zero
3. Market supply curve is summation of individual supply curves.
(a) Horizontal
(6) Vertical
(c) Can be both horizontal or vertical (d) None of the above
4. Movement along the supply curve is also called:
(a) Change in supply
(6) Change in quantity supplied
(c) Contraction in supply
(d) Increase in supply
5. An upward movement along a supply curve shows:
(a) Contraction in supply
(6) Decrease in supply
(c) Expansion in supply
(d) Increase in supply
6. A rightward shift in supply curve shows:
(a) Contraction in supply
(6) Decrease in supply
(c) Expansion in supply
(d) Increase in supply
7. When less quantity is supplied at a lower price, it shows:
(a) Contraction in supply
(6) Decrease in supply
(c) Expansion in supply
(d) Increase in supply​

Answer 1

Answer:

1. a

2. a

3. a

4. b

5. c

6. d

7. d

Answer 2

• All of the above should be constant in the law of supply in the short run.
• The supply curve is upward it is positive. The producers can increase the supply when the price of the product goes up.
• The market supply curve is the summation of individual supply curves it can be both horizontal or vertical.
• An upward movement along a supply curve shows an increase in supply. When the price of the product goes up the supply also goes up so that the producers get more and more profit.
• A rightward shift in the supply curve indicates that there is an increase in the quantity supplied at the existing price.
• When less quantity is supplied at a lower price it shows a contraction in supply.