Elasticity of supply ranges from ___________.
Zero to infinity
Zero to one
One to infinity
None of these
The supply of a commodity values ___________.
Directly with its price
Inversly with its price
Disproportionatily with its price
A fall in supply brought about by a fall in price is known as ______.
Contraction of supply
Expansion of supply
Increase in supply
In a straight line demand curve sloping downward from left to right, what will be the elasticity of demand at the mid point of the curve?
Infinity
Unity
Zero
One
In a market economy a central problems are settled by
Private sector
Central planning authority
Price mechanism
Demand theory
Price mechanism refers to interaction of
Supply and demand
Supply and price
Price and demand
Profit and demand
The basic unit of consumption in a market is
Individual household
All households
Society
Group
A slight change in price causing on infinite change in demand is a situation of
Unit elastic demand
Perfectly elastic demand
More elastic demand
Perfectly inelastic demand
A small change in price leading to a proportionately larger change in supply is a situation of ___________.
Perfectly elastic supply
Less elastic supply
More elastic supply
Expansion and contraction of supply is due to changes in ________.
Price of the commodity
Income of the firm
Technology
