ISC ECONOMICS 12 Price Elasticity Of Supply MCQs with solved Answers

1. “The degree of responsiveness of change in Supply of the good due to the change in its price” is known as :
(a) Price Elasticity Of Supply
(b) Price Elasticity Of Demand
(c) Price Elasticity Of Income Demand
(d) Price Elasticity Of Supply Cross

2. Price Elasticity Of Supply is always:
(a) positive due to the direct relationship between price and quantity supplied.
(b) Negative due to the Indirect relationship between price and quantity supplied.
(c) positive due to the direct relationship between price and quantity supplied.
(d) None of these

3. Which of the following degrees of Price Elasticity of Supply?
(a) Perfectly elastic Supply (Es=∞)
(b) Perfectly Inelastic Supply (Es=0)
(c) Unitary elastic Supply (Es=1)
(d) Highly Elastic Supply  (Es>1)
(e) All of  these

4. Supply of a commodity is said to be ………………… when A slight or no change in the price leads to infinite changes in the quantity Supplied.
(a) perfectly elastic
(b) Perfectly Inelastic 
(c) Unitary elastic 
(d) All of the above

5. Supply of a commodity is said to be ………………. when the Supply of a commodity does not change at all irrespective of any change in its price.
(a) perfectly elastic
(b) Perfectly Inelastic 
(c) Unitary elastic 
(d) All of the above

Answer – Question Number 1 To 5 

1. Answer- (a) Price Elasticity Of Supply

2. Answer- (a) positive due to the direct relationship between price and quantity supplied.

3. Answer- (e) All of  these

4. Answer- (a) perfectly elastic

5. Answer- (b) Perfectly Inelastic 

ISC ECONOMICS 12 Price Elasticity Of Supply MCQs with solved Answers (Question 6 to 10)

6. Supply of a commodity is said to be…………………………………. When the percentage change in the supply of a commodity is more than the percentage change in its price.
(a) perfectly elastic
(b) Perfectly Inelastic 
(c) Unitary elastic 
(d) Greater than unitary elastic

7. Supply of a commodity is said to be ………………. Supply When the percentage change in Supply of a commodity is less than the percentage change in its price.
(a) perfectly elastic
(b) Perfectly Inelastic 
(c) Less than unitary elastic
(d) Greater than unitary elastic

8. Supply of a commodity is said to be Unitary elastic  When the percentage change in the supply of a commodity is equal to the percentage change in price.

(a) perfectly elastic
(b) Unitary elastic Supply
(c) Less than unitary elastic
(d) Greater than unitary elastic

9. According to ……………….. method, elasticity is measured at a given point on the supply curve.
(a) Geometric
(b) Percentage
(c) a and b both
(d) None of these

10. Geometric method is also known as…
(a) Arc Method
(b) Point Method
(c) a and b both
(d) None of these

Answer – Question Number 6 To 10

6. Answer- (d) Greater than unitary elastic

7. Answer- (c) Less than unitary elastic

8. Answer- (b) Unitary elastic Supply

9. Answer- (a) Geometric

10. Answer- (c) a and b both

ISC ECONOMICS 12 Price Elasticity Of Supply MCQs with solved Answers (Question 11 to 15)

11. A firm sells 40 units of commodity X when its price is ₹100. At what price it will sell 60 units of the commodity if its price elasticity of supply is 0.8.
(a) ₹150
(b) ₹162.50
(c) ₹152.50
(d) ₹172.50

12. : If the price of oranges increases by 40% per kg and its quantity supplied
increases from 100 to 125 kgs. Calculate price elasticity of supply of oranges.
(a) .625
(b) .725
(c) .525
(d) .825

13. At a price of ₹ 100 per unit, a seller sells 200 units of the commodity and at a
price of ₹50 per unit, he sells 100 units of the commodity. The elasticity of supply will be:

(a) 1
(b) .80
(c) .90
(d) None of these

14. Factors determining elasticity of supply will be:
(a) Nature of the commodity
(b) Cost of production of additional units of a good
(c) Time period
(d) All of these

15. In the case of Unitary elastic supply :
(a) Supply curve is a straight line reaching up from the origin.
(b) Supply curve is parallel to X-axis
(c) Supply curve is parallel to Y-axis
(d) None of these

Answer – Question Number 11To 15

11. Answer- (b) ₹162.50

12. Answer- (a) .625

13. Answer- (a) 1

14. Answer- (d) All of these

15. Answer- (a) Supply curve is a straight line reaching up from the origin.

ISC ECONOMICS 12 Price Elasticity Of Supply MCQs with solved Answers

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