Economics Practice Test – Theory of Supply (Questions with Answers and Explanations)

If price of yams decreases from N 15.00 per tuber to N 13.50 and the quantity supplied decreases by 20%, what is the elasticity of supply? (JAMB 2016)

A. 2.00    B. 0.50   C. 1.50   D. 1.00

The supply of cocoa is influenced by _______ (JAMB 2012)

A. seasonal conditions
B. the efficacy of fertilizer used
C. the demand for beverage
D. the availability of close substitutes

A set of factors that can shift the supply curve are changes in _____ (JAMB 2010)

A. weather, price and technology
B. technology, price and taste
C. technology, weather and population
D. population, price and taste

What effect would a change in price of a commodity have on its supply? (JAMB 2016)

A. An increase in supply
B. No change in supply.
C. A decrease in supply
D. A change in the quantity supplied

The graph above illustrates ______ (JAMB 2015)

A. an inelastic supply curve
B. a unitary elastic curve
C. a perfectly inelastic supply curve
D. an elastic supply curve