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1846

What will be the reaction of consumers in a market if there is a fall in the price of the substitute commodity X?

  • A. Price of commodity X will increase
  • B. Demand for the substitute of commodity X will decrease
  • C. Demand for commodity X will decrease
  • D. Supply of both commodity X and its substitute will increase.
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1847

An increase in market supply is caused by the following factors except_________

  • A. An improvement in innovation and technology.
  • B. An increase in the price of the commodity
  • C. A reduction in the cost of raw materials.
  • D. A favourable weather condition.
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1848

The coefficient of price elasticity of supply of land is usually____________

  • A. One
  • B. Greater than one
  • C. Zero
  • D. Less than one.
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1849

The price of soap rose from $10 to $20 causing a trader to increase her supply from 50 to 120 boxes per week. This makes supply_________

  • A. Unitary elastic.
  • B. Perfectly inelastic.
  • C. Fairly elastic.
  • D. Inelastic.
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1850

The leftward shift in the supply curve for a commodity indicates_________

  • A. An increase in quantity supplied
  • B. A decrease in supply.
  • C. A reduction in quantity supplied.
  • D. An increase in supply.
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