Theory of Supply — Practice Quiz

Price of the commodity, Technology, Number of producers, Input prices

Supply is affected by price of the commodity, technology, number of producers, and input prices. Consumer preferences affect demand, not supply.

True

The supply curve slopes upward from left to right, showing the positive relationship between price and quantity supplied according to the Law of Supply.

Perfectly elastic supply, Unit elastic supply, Perfectly inelastic supply, Relatively elastic supply

The five types of elasticity of supply are: perfectly elastic, relatively elastic, unit elastic, relatively inelastic, and perfectly inelastic. There is no negative elasticity of supply.

Increase in supply due to rise in price of the commodity

Expansion of supply occurs when quantity supplied increases due to rise in the commodity's own price, other factors remaining constant. This is shown by upward movement along the supply curve.