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

The supply of Kolanuts is influenced by ______ (JAMB 2015)

A. rate of interest on agricultural loans
B. weather conditions
C. population size
D. taste of the consumers

If a firm is faced with an elastic supply curve, its revenue will _____ (JAMB 2011)

A. double at a higher price
B. increase by more than the percentage increase in price
C. equal percentage change in price
D. he supplies at a higher price.

The price elasticity of supply of perishable goods is _____ (JAMB 2016)

A. elastic    B. unitary   C. inelastic    D. zero

From the table above, calculate the price elasticity of supply. (JAMB 2014)

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