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प्रश्न
Give reason or explain the following.
Supply is directly related to price.
उत्तर १
Supply is directly related to price.
Meaning: -The law of supply establishes a functional relationship between the price of a commodity and its quantity supplied in the market.
Definition: -According to Marshall the law of supply is defined as” Other thing being equal, the quantity of a commodity supplied is directly related to its price”
In other words, more quantity of a commodity is offered for sale at a higher price and less quantity is offered for sale at a lower price. So supply of a commodity is directly related to its price.
Symbolically it can be stated as follows:
Sx = f (Px)
Where, S stands for supply, f stands for function of, P stands for Price, x stands for a given commodity.
उत्तर २
Other things remaining constant, the quantity supplied of a commodity is positively related to the price of the commodity. Higher prices implies higher profitability for the producers. Thus, at higher prices producers prefer to supply greater quantities of the commodity.
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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.
When price of a good rises from Rs 8 per unit to Rs 10 per unit, producer supplies 40 units more. Price elasticity of supply is 2. What is the quantity supplied before the price 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 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.
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.
State whether the following statement is true or false :
Under perfect competition price is determined by equilibrium of demand and supply.
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.
Fill in the blank with appropriate alternatives given in the bracket:
________ is one of the determinants of aggregate supply.
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.
Fill in the blank with appropriate alternative given below
An increase in supply means selling a ____________ amount at the same price.
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.
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.
Do you agree or disagree with the following statement? Give reason.
There is no difference between stock and supply.
Do you agree or disagree with the following statement? Give reason.
Price is the only determinant of supply.
Answer the following about 200 to 250 words
State and explain the law of supply. What are the exceptions to this law?
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.
Choose the correct alternative from given options:
The coefficient of price elasticity of supply of a good is 3. It is known as ___________.
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.
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.
