Delhi Public School, Bopal-Ahmedabad
Assignment cycle 11-Supply and elascicity of supply DOS : 14.11.2025
Instructions: It is important to draw curve in all the diagrams in the question.
1.The rise in supply due to rise in price is called
(a) Increase in supply (b)Decrease in supply ( c) Extension of supply (d) None of these
2.When supply curve is upward sloping, its slope is:
(a) Positive (b) Negative ( c) First positive then negative (d)Zero
3.Market supply curve is_____________sum of individual supply curve.
(a)Horizontal (b)Vertical (c )Can be both horizontal or vertical (d) None of these
4.Movement along a supply curve is also called:
(a)Change in supply (b) Change in quantity supplied (c )Contraction in supply (d) Increase
in supply
5.A upward movement along a supply curve shows;
(a)Contraction in supply (b) Decrease in supply (c )Expansion in supply (d) Increase in
supply
6.A rightward shiftin supply curve shows
(a)Contraction in supply (b) Decrease in supply (c) Expansion in supply (d)Increase in
supply
7.When same quantity is supplied at a higher price, it shows:
(a)Contraction in supply (b) Decrease in supply (c )Expansion in supply (d) Increase in
supply
8. When supply curve is vertical, Es______________?
(a) Zero (b) 1 (c )Infinite (d) Ed less than 1
9 When supply curve is horizontal, Es=-------?
(a) Zero (b) 1 ( c) Infinite (d)Ed is more than unitary
10. If 16% rise in price causes 40% increase in supply, elasticity of supply will be:
(a) 1.5 (b) 2.0 (c ) 2.5 (d) 3.5
11 Which of the following causes an 'Increase' in supply (a rightward shift in the supply
curve)?
a) Rise in the price of the commodity. b) Rise in the price of a factor of production.
c) Technological progress in the production of the good.d) Increase in excise duty (tax) on
the commodity.
Answer: (c) Technological progress in the production of the good.
12. When the price elasticity of supply ($E_s$) is equal to infinity ($E_s = \infty$), the
supply is said to be:
a) Relatively Elastic b) Relatively Inelastic
c) Unitary Elastic d) Perfectly Elastic
Answer: (d) Perfectly Elastic
13 Assertion and Reason
a) Both A and R are true, and R is the correct explanation of A.
b) Both A and R are true, but R is not the correct explanation of A.
c) A is true, but R is false. d) A is false, but R is true.
Assertion (A): The supply curve of a commodity slopes upward from left to right.1
Assignment cycle 11-Supply and elascicity of supply DOS : 14.11.2025
Instructions: It is important to draw curve in all the diagrams in the question.
1.The rise in supply due to rise in price is called
(a) Increase in supply (b)Decrease in supply ( c) Extension of supply (d) None of these
2.When supply curve is upward sloping, its slope is:
(a) Positive (b) Negative ( c) First positive then negative (d)Zero
3.Market supply curve is_____________sum of individual supply curve.
(a)Horizontal (b)Vertical (c )Can be both horizontal or vertical (d) None of these
4.Movement along a supply curve is also called:
(a)Change in supply (b) Change in quantity supplied (c )Contraction in supply (d) Increase
in supply
5.A upward movement along a supply curve shows;
(a)Contraction in supply (b) Decrease in supply (c )Expansion in supply (d) Increase in
supply
6.A rightward shiftin supply curve shows
(a)Contraction in supply (b) Decrease in supply (c) Expansion in supply (d)Increase in
supply
7.When same quantity is supplied at a higher price, it shows:
(a)Contraction in supply (b) Decrease in supply (c )Expansion in supply (d) Increase in
supply
8. When supply curve is vertical, Es______________?
(a) Zero (b) 1 (c )Infinite (d) Ed less than 1
9 When supply curve is horizontal, Es=-------?
(a) Zero (b) 1 ( c) Infinite (d)Ed is more than unitary
10. If 16% rise in price causes 40% increase in supply, elasticity of supply will be:
(a) 1.5 (b) 2.0 (c ) 2.5 (d) 3.5
11 Which of the following causes an 'Increase' in supply (a rightward shift in the supply
curve)?
a) Rise in the price of the commodity. b) Rise in the price of a factor of production.
c) Technological progress in the production of the good.d) Increase in excise duty (tax) on
the commodity.
Answer: (c) Technological progress in the production of the good.
12. When the price elasticity of supply ($E_s$) is equal to infinity ($E_s = \infty$), the
supply is said to be:
a) Relatively Elastic b) Relatively Inelastic
c) Unitary Elastic d) Perfectly Elastic
Answer: (d) Perfectly Elastic
13 Assertion and Reason
a) Both A and R are true, and R is the correct explanation of A.
b) Both A and R are true, but R is not the correct explanation of A.
c) A is true, but R is false. d) A is false, but R is true.
Assertion (A): The supply curve of a commodity slopes upward from left to right.1
