Theory of Supply MCQ — Class 11

Test your understanding of Theory of Supply with 20 free questions across Easy and Moderate. Hard and Extreme require Premium. Choose a level in the interactive quiz to answer questions and review explanations.

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Key concepts to revise

Supply

Supply: the quantity of a commodity a producer is willing and able to offer for sale at a given price during a given period

Supply schedule

Supply schedule: a table showing quantities supplied at different possible prices

Market supply

Market supply: the total quantity supplied by all firms in the market at a given price

Law of supply

Law of supply: other things remaining constant, quantity supplied generally varies directly with own price

Extension of supply

Extension of supply: an increase in quantity supplied caused solely by a rise in the commodity’s own price

Contraction of supply

Contraction of supply: a decrease in quantity supplied caused solely by a fall in own price

Increase in supply

Increase in supply: a rightward shift of the supply curve caused by a favourable non-price determinant

Input-price effect on supply

Input-price effect on supply: a fall in input prices generally increases supply while a rise generally decreases supply

Price elasticity of supply

Price elasticity of supply: the responsiveness of quantity supplied to a change in own price

Percentage method of supply elasticity

Percentage method of supply elasticity: elasticity of supply equals percentage change in quantity supplied divided by percentage change in price

Try these sample MCQs

1. Which concept best matches this situation? At ₹50 a seller is willing to offer 100 units this week.

  1. Supply schedule
  2. Supply
  3. Law of supply
  4. Increase in supply
Check answer and explanation

Supply. Supply: the quantity of a commodity a producer is willing and able to offer for sale at a given price during a given period

2. Which concept best matches this situation? The table lists price and corresponding quantity offered for sale.

  1. Market supply
  2. Extension of supply
  3. Supply schedule
  4. Input-price effect on supply
Check answer and explanation

Supply schedule. Supply schedule: a table showing quantities supplied at different possible prices

3. Which concept best matches this situation? Supplies of firms A, B and C are added at each price.

  1. Law of supply
  2. Contraction of supply
  3. Price elasticity of supply
  4. Market supply
Check answer and explanation

Market supply. Market supply: the total quantity supplied by all firms in the market at a given price

After the quiz

Write down the concepts you missed. Explain each one in your own words, give an example, and attempt the level again without notes. A high score on a short quiz does not replace revision of the whole chapter.

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