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CA Foundation Supply — practice questions — page 2

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 31–60 of 64.

A flatter supply curve implies price changes bring what quantity response?Read the answer and worked solution →Giving producers more time to respond generally makes supply what?Read the answer and worked solution →For produced goods, supply is normally more elastic in which period?Read the answer and worked solution →Which producer can raise output fastest when price rises?Read the answer and worked solution →Large stocks of finished goods make a producer's supply what?Read the answer and worked solution →Which good has a relatively elastic supply because its production is simple?Read the answer and worked solution →Why is the supply of specific motor vehicles relatively inelastic?Read the answer and worked solution →Easy mobility of factors of production makes the PES what?Read the answer and worked solution →A limit on raw material availability, as with gold in a country, makes supply what?Read the answer and worked solution →Along a linear supply curve, the slope is constant. What about elasticity?Read the answer and worked solution →Compared with slope, elasticity is what with respect to measurement units?Read the answer and worked solution →In an apartment market, how does elastic supply affect the rent rise after a demand increase?Read the answer and worked solution →Market equilibrium occurs where quantity demanded equals what?Read the answer and worked solution →Market equilibrium is represented graphically by which feature?Read the answer and worked solution →The price at which the market clears is also called what?Read the answer and worked solution →In a free market, excess supply (a glut) leads to which price movement?Read the answer and worked solution →In an unfettered market, excess demand (a shortage) leads to what?Read the answer and worked solution →If demand increases with supply unchanged, what happens to equilibrium price and quantity?Read the answer and worked solution →After a supply curve shift, how do equilibrium price and quantity move?Read the answer and worked solution →A rise in consumers' disposable income does what to the equilibrium price of a normal good?Read the answer and worked solution →A rise in business costs changes the equilibrium price how?Read the answer and worked solution →Comparing two static equilibria with each other is known as what?Read the answer and worked solution →A partial equilibrium analysis of one market assumes other prices are what?Read the answer and worked solution →Who first formalised the idea of a one-period general economic equilibrium?Read the answer and worked solution →A general equilibrium model differs from partial equilibrium by covering what?Read the answer and worked solution →In an equilibrium, no agent has an incentive to do what?Read the answer and worked solution →The stability property says equilibrium is the outcome of what?Read the answer and worked solution →Economists caution against attaching what to an equilibrium price?Read the answer and worked solution →How does a monopolistic firm prop up prices at its equilibrium?Read the answer and worked solution →In a dynamic equilibrium, which stays unchanging?Read the answer and worked solution →

Worked practice questions

A flatter supply curve implies price changes bring what quantity response?

  1. A large one
  2. A small one
  3. A negative one
  4. None at all
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Correct answer: A. A large one

On a flat curve even a small price change moves quantity supplied a lot.

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Giving producers more time to respond generally makes supply what?

  1. More elastic
  2. Left unchanged
  3. Perfectly rigid
  4. Less elastic
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Correct answer: A. More elastic

With time, producers can adjust inputs and capacity, so quantity responds more fully to price.

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For produced goods, supply is normally more elastic in which period?

  1. In the short run
  2. In the long run
  3. On the very first day
  4. In neither period
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Correct answer: B. In the long run

In the long run all factors of production can be varied, while in the short run mainly labour can.

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