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प्रश्न
Answer the following about 200 to 250 words
What are the assumptions law of supply?
State and explain assumptions of the law of supply.
उत्तर १
According to the law of supply, the quantity supplied of a commodity is positively related to its price, other things remaining constant. In other words, when the price of a commodity rises (or falls), the quantity supplied will increase (or decrease), and other things remain unchanged.
The law of supply is based on the following assumptions:
- The price of inputs, or the firm's cost of production, remains the same.
- The state of technology does not change, i.e. there is neither appreciation nor depreciation of the existing technology.
- The price of the related goods (such as substitute goods and complementary goods) remains the same.
- Government policies remain unchanged.
- There is no change in the transport facilities used by the firm and the transportation cost.
- There is no change in the natural factors and there is no advent of any natural calamity such as an earthquake etc.
उत्तर २
The law of supply is based on the following assumptions:
- Constant cost of production: It is assumed that there is no change in the cost of production. A change in the cost of production will affect the profits of the seller. Therefore, less quantity will be supplied at the same price.
- Constant production technique: It is also assumed that the production technique does not change. Improved production techniques may lead to an increase in production, which in turn may lead to an increase in the supply at the same price.
- No change in weather conditions: It is assumed that there is no change in the weather conditions. Natural calamities like floods, earthquakes etc. may decrease supply.
- No change in Government policy: It is also assumed that government policies like taxation, trade policy, etc. remain unchanged.
- No change in transport cost: It is assumed that there is no change in the condition of transport facilities and transport costs. For example, a better transport facility increases supply at the same price.
- Prices of other goods remain constant: Prices of other goods are assumed to remain constant. If they change, the law of supply may not hold true because producers may transfer resources to other products.
- No future expectations: The law also assumes that the sellers do not expect future changes in the price of the product.
संबंधित प्रश्न
Relatively elastic supply
Price is the only determinant of supply.
Elasticity of supply
Individual supply and Market supply.
A producer supplies 80 units of a good at a price of Rs 10 per unit. Price elasticity of supply is 4. How much will he supply at Rs 9 per unit?
When the price of a good rises from Rs 20 per unit to Rs 30 per unit, the revenue of the firm producing this good rises from Rs 100 to Rs 300. Calculate the price elasticity of supply.
When price of a commodity falls from Rs 12 per unit to Rs 9 per unit, the producer supplies 75 percent less output. Calculate price elasticity of supply.
When price of a good rises from Rs 10 to Rs 12 per unit the producer supplies 10 percent more. Calculate price elasticity of supply.
What is perfectly elastic supply?
When price falls by Rs 2 per unit, supply falls from 100 units to 80 units. Price elasticity of supply is 2. What was the price per unit before change?Calculate.
Price elasticity of supply of a good is 2. A producer supplies 100 units of a good at a price of Rs 20 per unit. At what price will he supply 80 units?
When price of a good raises from Rs 12 per unit to Rs 15 per unit the producer supplies 50 per cent more output. What is the price elasticity of supply? Calculate.
When price of a good falls from Rs 20 to Rs 10 per unit, producer reduces supply from 100 units to 50 units. Calculate price elasticity of supply.
A producer supplies 100 units of a good at a price of Rs 20 per unit. Price elasticity of supply is 2. At what price will he supply 50 units? Calculate
Explain the effect of technological progress on supply of a good.
What is supply?
Supply is inversely related to price.
Supply is directly related to price.
Explain, with reason, whether you Agree or Disagree with the following statement
There is no difference between stock and supply.
Give one reason for an “increase” in supply of a commodity.
A firm supplies 10 units of a good at a price of Rs 5 per unit. Price elasticity of supply is 1.25. What quantity will the firm supply at a price of Rs 7 per unit?
State the components of supply of money.
State whether the following statement is true or false :
Supply of perishable goods is inelastic.
Give reason or explain the following statement:
The supply of agriculture commodity is relatively inelastic.
Give reason or explain the following statement:
A monopolist can control the supply of goods .
Give reason or explain the following statement:
The supply of land is inelastic .
Fill in the blank using proper alternative given in the bracket:
Other factors remaining constant, when price of a commodity raises there is ................. of supply.
Explain with reason, whether you agree or disagree with the following statement:
There is direct relationship between price and quantity supplied.
State whether the following statements are True or False:
Better transport facility increases supply at the same price.
Define or explain the following concepts (Any THREE):
Stock
Fill in the blank with appropriate alternative given below
When the price rises, there is __________ of supply.
Fill in the blank with appropriate alternative given below
The vertical supply curve represents _____________ elasticity.
Match the following:
| Group A | Group B |
| 1) Perfectly Elastic Supply | a. Vertical supply curve |
| 2) Stock | b. Horizontal supply curve |
| 3) Increase in supply | c. Potential supply |
| 4) Perfectly Inelastic supply | d. Rightward shift in supply curve |
| 5) `"TC"/"TQ"` | e. Leftward shift in |
| f. Average cost |
State whether the following statement is TRUE and FALSE.
If price falls, the supply curve will shift to left.
State whether the following statement is TRUE and FALSE.
Geometric Method is also known as Point Method.
State whether the following statement is TRUE and FALSE.
Total Cost is the total expenditure incurred by a firm.
Define or explain the following concept:
Total Cost
Define or explain the following concept:
Stock
Define or explain the following concept:
Output
Define or explain the following concept:
Elasticity of Supply
Give reason or explain:
With a slight change in the price, if supply varies in a greater proportion then supply is said to be relatively elastic.
Give reason or explain:
Stock can exceed supply.
Give reason or explain:
When price rises, supply expands.
Distinguish between the following:
Relatively Elastic Supply and Relatively Inelastic Supply
Write short note on the following:
Elasticity of supply.
Answer the following question:
What are the exceptions to the law of supply?
Answer the following about 200 to 250 words
Explain various types of Price elasticity of Supply.
Answer the following about 200 to 250 words
Explain various methods to measure Price Elasticity of Supply.
Give reason or explain the following.
Law of supply is not applicable to rare articles.
Observe the following table and answer the questions:
Supply schedule of chocolates
| Price in ₹ | Quantity supplied in units |
| 10 | 200 |
| 15 | ______ |
| 20 | 300 |
| 25 | 350 |
| 30 | ______ |
| 35 | ______ |
| 40 | ______ |
- Complete the above supply schedule.
- Draw a diagram for the above supply schedule.
- State the relationship between price and quantity supplied.
Identify & explain the concept from the given illustration.
Amar sells 50 dozens of mangoes daily at ₹ 300/- per dozen.
Identify & explain the concept from the given illustration.
Ajay’s papad and pickle producing unit incurred expenditure of ₹ 50,000/- on machinery, ₹ 1,00,000/- towards rent and ₹ 2,00,000/- on wages for the workers during 2018-19.
Explain any four exceptions to the law of supply
Study the following table, figure, passage and answer the question given below it.
| Price in Rs. | Quantity supplied |
| 10 | 300 |
| 20 | ______ |
| 30 | 400 |
| 40 | 450 |
| 50 | ______ |
| 60 | 550 |
| 70 | 600 |
- Complete the above table (1m)
- State the relationship between Price and quantity supplied (1m)
- Draw supply curve based on above supply schedule (2m)
State and explain the law of supply.
