If the supply of a product is elastic, a small reduction in price will
Reduce the cost of production
Reduce the quantity supplied
Increase the quantity supplied
Lead to no change in the quantity supplied
Correct answer is B
Elastic demand means a change in price would cause a change in the quantity demanded. In an elastic demand, a small reduction in price would increase the quantity demanded and a decrease in the quantity supplied. This is so because, suppliers will not be willing to supply much goods when the price for it is low.
What is the market equilibrium price?
5.00
8.00
9.00
7.00
6.00
Correct answer is E
No explanation has been provided for this answer.
One of the major factors that brings about changes in supply is
Market discrimination
Availability of storage facilities
The cost of storage
Incentives granted to workers
Correct answer is C
The available of facilities to store produced goods would affect the quantity of goods supplied to the market. Producers maybe willing to produce, but if there are no storage facilities to store the manufactured goods pending when the demand for it will arise, producers would cut down on production thereby affecting the quantity of goods supplied.
An income elastic good
A normal good
An inferior good
Demand elastic
Supply elastic
Correct answer is C
No explanation has been provided for this answer.
Utility is the satisfaction derived from the
Distribution of goods and services
Use of goods and services
Demand of goods and services
Production of goods and services
Correct answer is B
Utility is simply the satisfaction a consumer derives from the consumption of goods and services.
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