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

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

If the supply of a product is elastic, a small reduction in price will _____ (JAMB 2013)

A. reduce the cost of production
B. reduce the quantity supplied
C. increase the quantity supplied
D. lead to no change in the quantity supplied.

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

The graph above represents _____ (JAMB 2017)

A. a decrease in quantity supplied
B. an increase in supply
C. a decrease in supply
D. an increase in quantity supplied

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