Supply and Elasticity of Supply MCQ Questions Class 12 covers certain important topics, which are covered under syllabus for ISCE Class 12 and are coming in Term I examination for the academic year 2022-23. Supply and Elasticity of Supply MCQ Test contains 38 questions. MCQ on Economics Class 12 ISC have been made for Class 12 students to help check the concept you have learnt from detailed classroom sessions and application of your knowledge.
Supply and Elasticity of Supply MCQ Questions Class 12
Concept of Stock and Supply
1.Which one of the following is NOT true
(a) Supply Is always expressed at price
(b) Supply is a desired quantity
(c) Supply is same as stock
(d) Supply is a Flow Variable
Answer
Answer: (c) Supply is same as stock
2.Supply is a _____ variable
(a) stock
(b) constant
(c) flow
(d) both a and b
Answer
Answer: (c) flow
3. ______ of a commodity is the total amount of commodity available with the producers at any given time
(a) Supply
(b) Actual Supply
(c) Elastic Supply
(d) Stock
Answer
Answer: (d) Stock
4. Stock of a commodity is _____
(a) always less than supply
(b)its potential supply
(c) always equal to supply
(d) none of the above
Answer
Answer: (b)its potential supply
5. Stock is also known as
(a) actual supply
(b) intended supply
(c) inelastic supply
(d) bot a and c
Answer
Answer: (b) intended supply
Supply and Elasticity of Supply MCQ Questions Class 12
Determinants of Supply
6. Which one of the following is NOT a determinant of Supply
(a) Input Prices
(b) Demonstration Effect
(c) Policy of Taxation
(d) Expectations about future prices
Answer
Answer: (b) Demonstration Effect
7. High input prices decrease the ______
(a) profit-margin
(b) supply
(c) demand
(d) both a and b
Answer
Answer: (d) both a and b
8. If the price of a commodity increases, the supply for it will _________
(a) decrease
(b) increase
(c) be 0
(d) none of the above
Answer
Answer: (b) increase
9. In case of a monopolist firm, the output produced will ________
(a) be restricted
(b) not be restricted
(c) be in abundance
(d) none of the above
Answer
Answer: (a) be restricted
10. The imposition of heavy taxes on a commodity will _______ the supply
(a) increase
(b) decrease
(c) not be related to
(d) none of the above
Answer
Answer: (b) decrease
11. A firm is supplying Good X, the market price of its Substitute Good Y increases by 10 percent, what will the firm ideally do
(a) Decrease Supply of Good X
(b) Switch to Y
(c) Continue Supplying Good X
(d) No change
Answer
Answer: (b) Switch to Y
Supply and Elasticity of Supply MCQ Questions Class 12
Supply Function
12. __________ Is a statement which states the relationship between quantity supplied of a commodity and its determinants
(a) Supply statement
(b) Producers’ Equilibrium
(c) Supply Function
(d) Law of Supply
Answer
Answer: (c) Supply Function
This is a Supply function, answer the following with respect to it
13. What does T stand for
(a) Taste of the consumer
(b) Taxation Policy
(c) Technique of Production
(d) None of the above
Answer
Answer: (c) Technique of Production
14. What does E stand for
(a) Expectation about future prices
(b) Each type of good produced
(c) Elasticity of Supply
(d) None of the above
Answer
Answer: (a) Expectation about future prices
15. What does P1 …… Pn-1 STAND FOR
(a) Price of the commodity produced
(b) Prices of commodities other than the price of the good produced
(c) Price of factors of production
(d) None of the above
Answer
Answer: (b) Prices of commodities other than the price of the good produced
16. Which of these aren’t a part of the Supply Function
(a) Income of consumer
(b) Taxation Policy
(c) Natural Factors
(d) Means of Transport
Answer
Answer: (a) Income of consumer
Supply and Elasticity of Supply MCQ Questions Class 12
Law of Supply and its explanation – Supply Schedule, curve, and exceptions
17. Law of supply states that, other things remaining constant, the quantity of any commodity that firms will produce and offer for sale ____with a rise in price and ____ with a fall in price
(a) rises, rises
(b) falls, rises
(c) rises, falls
(d) falls, falls
Answer
Answer: (c) rises, falls
18. A supply schedule is a _______ statement showing various quantities of commodity which producers are willing to produce and sell at various alternative price during a given period of time
(a) graphical
(b) pictorial
(c) tabular
(d) both a and b
Answer
Answer: (c) tabular
19. _________ is a diagrammatic representation of the law of supply
(a) Supply Schedule
(b) Supply Graph
(c) Supply Table
(d) Supply Curve
Answer
Answer: (d) Supply Curve
20. _______ is defined as the curve which shows various quantities of a given good which a single producer is willing to supply at different prices during a given period of time.
(a) Single Supply Curve
(b) Industry Supply Curve
(c) Individual Supply Curve
(d) Market Supply Curve
Answer
Answer: (c) Individual Supply Curve
21. A market Supply Curve is also known as
(a) Reserve Price Curve
(b) Industry Supply Curve
(c) Total Cumulative Curve
(d) None of the Above
Answer
Answer: (b) Industry Supply Curve
22. Why is the Supply Curve Positive
(a) Fall in Marginal Cost of Production
(b) A rise in price of a good would demotivate other producers to produce goods
(c) Level of price determines amount of profits
(d) All of the Above
Answer
Answer: (c) Level of price determines amount of profits
23. State an example of Vertical Supply Curve
(a) Supply of Old rare manuscripts
(b) Supply of Currency
(c) Supply of Shoes
(d) All of the above
Answer
Answer: (a) Supply of Old rare manuscripts
24. In case of a vertical supply curve, supply curve is
(a) parallel to Y-axis
(b) perpendicular to Y-axis
(c) at a 45-degree angle to origin
(d) parallel to X-axis
Answer
Answer: (a) parallel to Y-axis
Supply and Elasticity of Supply MCQ Questions Class 12
Movement along the Supply Curve and Shift along the supply curve
25. When the quantity supplied of a commodity falls due to a fall in its own price, other factors being same, it’s called
(a) expansion of supply
(b) decrease in supply
(c) increase in supply
(d) contraction of supply
Answer
Answer: (d) contraction of supply
26. When the quantity supplied of a commodity rises due to the rise in the own price of the commodity, other factors remaining the same, it is called___________
(a)contraction of supply
(b)increase in supply
(c)decrease in supply
(d)expansion of supply
Answer
Answer: (d)expansion of supply
27. Fall in price of other goods will lead to
(a) Decrease in supply
(b) Leftward Shift of supply
(c) increase in Supply
(d) expansion of supply
Answer
Answer: (c) increase in Supply
28. _______ refers to a situation when producers are willing to supply a smaller quantity of the commodity at the same price or same quantity at higher price
(a) Increase in Supply
(b) Decrease in Supply
(c) Expansion of Supply
(d) Contraction of Supply
Answer
Answer: (b) Decrease in Supply
Supply and Elasticity of Supply MCQ Questions Class 12
Price Elasticity of Supply and its Measurement
29. _______ measures the degree of responsiveness of the quantity supplied of a commodity to a change in its price.
(a) cross elasticity of supply
(b) income elasticity of supply
(c) price elasticity of supply
(d) money elasticity of supply
Answer
Answer: (c) price elasticity of supply
30. In the case of perfectly elastic supply, the price elasticity of supply is ______
(a) 0
(b) 1
(c) infinite
(d) -1
Answer
Answer: (c) infinite
31. _____________ supply represents a case in which there is no change in the quantity supplied of a commodity, no matter how large a price change takes place
(a) unitary
(b) elastic
(c) perfectly elastic
(d) perfectly inelastic
Answer
Answer: (d) perfectly inelastic
32. Supply of the Mona Lisa Painting is an example of
(a) Inelastic Supply
(b) Elastic Supply
(c) Perfectly Inelastic Supply
(d) Perfectly Elastic Supply
Answer
Answer: (c) Perfectly Inelastic Supply
33. Supply is _______ when the percentage change in quantity supplied of a commodity is greater than the percentage change in its price
(a) elastic
(b) Inelastic
(c) unitary elastic
(d) Positive
Answer
Answer: (a) elastic
34. When elasticity of supply is 1, it is said to be _______
(a) perfectly elastic
(b) perfectly inelastic
(c) pure inelastic
(d) unitary elastic
Answer
Answer: (d) unitary elastic
35. __________ is used to measure the elasticity of supply at a given point on the supply curve.
(a) percentage method
(b) dot method
(c) geometric method
(d) arc method
Answer
Answer: (c) geometric method
Supply and Elasticity of Supply MCQ Questions Class 12
Numericals
36. Given, Elasticity of Supply is 3, current price is 42 and initial price is 40. Change in quantity demanded is 150. How many units of the commodity will be supplied at the current price?
(a) 1000
(b) 1150
(c) 850
(d) 152
Answer
Answer: (b) 1150
37. 500 units of a commodity are supplied at rupees 5 per unit. At what price 700 units of the commodity will be supplied for elasticity to be Unitary
(a) 4
(b) 5
(c) 6
(d) 7
Answer
Answer: (d) 7
38. A producer supplies 200 units of a good at $10 per unit. The price elasticity of supply is 2, how many units will the producer supply at $11 per unit.
(a) 300
(b) 40
(c) 240
(d) 160
Answer
Answer: (c) 240
Economics Class 12 ISC MCQs – Term 1
- Demand and Law of Demand MCQ Class 12
- Theory of Consumer Behaviour Class 12 MCQ
- Elasticity of Demand
- Supply – Law of Supply and Price Elasticity of Supply
- Market Mechanism
- Law of Returns
- Cost and Revenue Analysis
- Forms of Market
- Producer’s Equilibrium
- Determination of Equilibrium Price and Output under Perfect Competition