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CA Foundation Supply — practice questions

Explore 64 free Supply questions in CA Foundation Business Economics. Open each question or exercise to read its content, reference answers and available explanation.

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Supply questions and exercises with answers

Showing questions 1–30 of 64.

According to the law of supply, a rise in a good's own price causes what?Read the answer and worked solution →In the normal case, a supply curve slopes in which direction?Read the answer and worked solution →A change in a good's own price leads to what on its supply curve?Read the answer and worked solution →A change in a non-price determinant of supply causes what?Read the answer and worked solution →A technological advance in producing a good has what effect on its supply?Read the answer and worked solution →A rise in the price of an input, such as electricity, shifts supply which way?Read the answer and worked solution →More firms entering an industry shifts the market supply curve which way?Read the answer and worked solution →How is a market supply curve obtained from individual supply curves?Read the answer and worked solution →If the price of pigs rises, what happens to the supply of Spam made from pork?Read the answer and worked solution →A seller who expects demand to rise sharply soon will most likely do what now?Read the answer and worked solution →Which of these is a government action that can change supply?Read the answer and worked solution →A firm's short-run supply curve is which part of its cost curves?Read the answer and worked solution →The short-run supply curve lies on SRMC above which point?Read the answer and worked solution →The long-run supply curve of a firm is its long-run marginal cost above the minimum of which curve?Read the answer and worked solution →Which law gives the short-run marginal cost curve its rising shape?Read the answer and worked solution →In which market structure can a firm's supply function be derived?Read the answer and worked solution →When PES is less than one, supply is described as what?Read the answer and worked solution →A PES of exactly one means supply is of which kind?Read the answer and worked solution →A PES of zero means quantity supplied does what when price changes?Read the answer and worked solution →Unlike elasticity of demand, supply elasticities are generally of what sign?Read the answer and worked solution →A 10% price rise raises quantity supplied by 20%. What is PES?Read the answer and worked solution →Price rises from Rs 50 to Rs 60 and supply from 200 to 220 units. What is PES (simple percentage change)?Read the answer and worked solution →Quantity supplied rises 6% when price rises 4%. What is PES?Read the answer and worked solution →With PES of 0.5, by what percentage must price rise to lift quantity supplied by 10%?Read the answer and worked solution →With PES of 1.5, a price fall of 8% changes quantity supplied by what?Read the answer and worked solution →Perfectly inelastic supply has an Es value equal to what?Read the answer and worked solution →Relatively inelastic supply means Es lies between which values?Read the answer and worked solution →In relatively elastic supply, quantity changes by what percentage?Read the answer and worked solution →What is the typical supply elasticity of land, except under reclamation?Read the answer and worked solution →A steeper supply curve implies that quantity supplied is how sensitive to price?Read the answer and worked solution →

Worked practice questions

According to the law of supply, a rise in a good's own price causes what?

  1. Quantity supplied to fall
  2. Quantity demanded to rise
  3. The supply curve to shift left
  4. Quantity supplied to rise
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Correct answer: D. Quantity supplied to rise

With other factors constant, a higher own price makes production more profitable, so sellers offer more.

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In the normal case, a supply curve slopes in which direction?

  1. Perfectly vertical
  2. Perfectly horizontal
  3. Upward to the right
  4. Downward to the right
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Correct answer: C. Upward to the right

Higher prices bring larger quantities supplied, so the curve rises from left to right.

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A change in a good's own price leads to what on its supply curve?

  1. A change in the intercept
  2. A movement along the curve
  3. A shift to the right
  4. A shift to the left
Show answer and solution

Correct answer: B. A movement along the curve

Own price changes only move the seller along the existing curve, which is a change in quantity supplied.

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