AGR113 - CHAPTER 3

Law of supply state that

• when the price of goods decreases, the quantity supply of a goods is also decreases

• when the price of goods decreases, the quantity supply of a goods is rises

• when the price of goods rises, the quantity supply of a goods is lowers

• when the price of goods rises, the quantity supply of a goods is also rises

Shift in the whole supply curve is can be caused by ____ (choose all correct answer/answers)

• price of the goods

• technological advancement

• cost of production

• number of sellers

movement along the supply curve is can be caused by ____ (choose all correct answer/answers)

• price of the goods

• technological advancement

• cost of production

• number of sellers

Product produce together from the same source is called as ________

• competitive supply

• joint supply

• derived supply

• composite supply

Product required the same factor of production in their production process is called as ____

• competitive supply

• joint supply

• derived supply

• composite supply

If a small change in the price of product, cause much bogger change in quantity supplied, it is said that the supply is _______

• inelastic

• perfectly inelastic

• perfectly elastic

• elastic

If changes in price of products has zero effect on quantity supplied, the supply is ________

• perfectly elastic

• perfectly inelastic

• elastic

• inelastic

If the product is more perishable, the supply will be _____

• more elastic

• less elastic

Supply  for  industrial goods is elastic  because ______ (choose 2 correct answers)

• They can be kept for a long time

• Their gestation period is relatively  longer

• Supply depends greatly on climatic  conditions

• Input used can  easily substituted with others

Which of the followings are determinants of supply? (2 correct asnwers)

• Perishability

• Nature of the market

• Number of sellers

• The cost of production