Supply and Demand AFCAT Questions

AFCAT Indian Economy

Supply and Demand MCQ Questions


7.
Supply curve shows the relationship between
A.
Price and quantity demanded
B.
Price and quantity supplied
C.
Income and quantity supplied
D.
Quantity and price
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ANSWER :
B. Price and quantity supplied
8.
The law of supply states that, ceteris paribus, as the price of a good increases, the quantity supplied ____.
A.
Remains constant
B.
Decreases
C.
Increases
D.
Becomes inelastic
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ANSWER :
C. Increases
9.
Which of the following shifts the supply curve to the left?
A.
Increase in the number of producers
B.
Decrease in the price of related goods
C.
Increase in the cost of production
D.
None of the above
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ANSWER :
C. Increase in the cost of production
10.
Which of the following is NOT a determinant of supply?
A.
Cost of production
B.
Consumer preferences
C.
Technology
D.
Government policies
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ANSWER :
B. Consumer preferences
11.
What would happen to the supply curve if there is an improvement in technology?
A.
It remains unchanged
B.
It shifts to the left
C.
It shifts to the right
D.
It becomes steeper
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ANSWER :
C. It shifts to the right
12.
The equilibrium price is determined by
A.
The intersection of the demand and supply curves
B.
The demand curve alone
C.
The supply curve alone
D.
The highest price set by producers
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ANSWER :
A. The intersection of the demand and supply curves