InterviewSolution
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InterviewSolution
This section includes InterviewSolutions, each offering curated multiple-choice questions to sharpen your knowledge and support exam preparation. Choose a topic below to get started.
| 51. |
What term is used when less quantity is supplied with a fall in the price of a commodity? |
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Answer» Contraction in supply. |
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| 52. |
Why is total fixed cost curve parallel to ox-axis. |
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Answer» TFC remains constant at all levels of output. |
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| 53. |
If the price of a commodity falls by 10% and,consequently,the quantity supplied decreases by 20%. What will be its price elasticity of supply? |
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Answer» Es =% change in quantity/% change in price = 20%/ 10% = 2 |
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| 54. |
What is the price elasticity of supply associated when the supply curve passing through to intersect to x-axis? |
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Answer» Inelastic is the price elasticity of supply associated when the supply curve passing through to intersect to x-axis. |
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| 55. |
Give one differences between law of supply and price elasticity of supply. |
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Answer» Law of supply reflects the direction of change in supply where as price elasticity of supply measures the magnitude of change in supply. |
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| 56. |
How does the imposition of a unit tax affect the supply curve of a firm? |
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Answer» The supply curve will shift to the left side. |
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