Online Test — Supply
15 Questions • 15 min • Chapter MCQ
15:00
Question 1 of 15
Supply is the quantity a producer is willing and able to:
Buy
Sell at a given price
Store only
Destroy
Explanation: Supply is the quantity offered for sale at a given price.
Question 2 of 15
The total quantity available is called:
Supply
Stock
Demand
Surplus
Explanation: Stock is the total quantity available; supply is the part offered for sale.
Question 3 of 15
The total quantity all firms are willing to sell is:
Individual supply
Market supply
Stock
Demand
Explanation: Market supply is the sum of all firms' supply.
Question 4 of 15
The supply curve normally slopes:
Downward
Upward
Horizontally
Vertically
Explanation: Price and quantity supplied are directly related, so it slopes upward.
Question 5 of 15
The law of supply states price and quantity supplied move in the:
Same direction
Opposite direction
No direction
Reverse only
Explanation: They move in the same direction (direct relation).
Question 6 of 15
Producers supply more at higher prices because higher prices mean:
More profit
Less profit
No change
Higher tax only
Explanation: A higher price raises profit, encouraging more supply.
Question 7 of 15
Which is a determinant of supply other than the good's own price?
Prices of inputs
The colour of the shop
The day of the week only
Consumer taste only
Explanation: Input prices are a key determinant of supply.
Question 8 of 15
Better technology usually causes supply to:
Decrease
Increase
Stay the same
Become zero
Explanation: Better technology lowers cost and raises supply.
Question 9 of 15
A change in the good's own price causes a:
Movement along the supply curve
Shift of the supply curve
New curve only
No change
Explanation: Own-price changes move us along the same curve.
Question 10 of 15
A subsidy to producers usually shifts the supply curve:
Leftward (decrease)
Rightward (increase)
Vertically
It does not move
Explanation: A subsidy lowers cost and raises supply — a rightward shift.
Question 11 of 15
A tax on a good usually shifts the supply curve:
Rightward
Leftward (decrease)
Up only
It stays fixed
Explanation: A tax raises cost and lowers supply — a leftward shift.
Question 12 of 15
Elasticity of supply measures responsiveness of quantity supplied to:
Income
Price
Population
Taste
Explanation: It relates quantity supplied to price changes.
Question 13 of 15
If Eₛ > 1, supply is:
Inelastic
Elastic
Unit elastic
Perfectly inelastic
Explanation: Eₛ greater than 1 means elastic supply.
Question 14 of 15
A vertical supply curve shows supply that is:
Perfectly elastic
Perfectly inelastic
Unit elastic
Elastic
Explanation: A vertical curve = perfectly inelastic (Eₛ = 0).
Question 15 of 15
Supply tends to be more elastic in the:
Long run
Short run
Market period only
It is always inelastic
Explanation: Given time, firms can adjust output, so supply is more elastic in the long run.