Download App

Theory of Supply — Economics STD 10 — Question

ICSE BoardEnglish MediumSTD 10EconomicsTheory of Supply1 Mark
MCQ
Statement (1): When supply curve is vertical, price elasticity is infinity.
Statement (2): When supply curve is horizontal, price elasticity of supply will be zero.
  • A
    Both the statements are true
  • ✓
    Both the statements are false
  • C
    Statement 1 is true but Statement 2 is false.
  • D
    Statement 2 is true but Statement 1 is false.
✓

Answer

Correct option: B.
Both the statements are false
B

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "Assertion (A) & Reason (B) MCQ" from Theory of Supply→Theory of Supply — all question types→Economics STD 10 question papers→ICSE Board STD 10 question papers→ICSE Board question paper generator→

Similar questions

→
Statement (1): Taj Mahal Tea and Tata Tea are examples of substitute goods.
Statement (2): Printer and ink cartridges are examples of complementary goods.
→
Statement (1): SLR is determined by the central bank.
Statement (2): CRR is fixed by the commercial banks.
→
Statement (1): Normal goods violate the law of demand. 
Statement (2): Law of demand is based on the assumption that the commodity is a normal good and has no status value. 
→
→
Statement (1): Perfect competition is a hypothetical market situation.
Statement (2): Under perfect competition, the government decides the prices of the products and services.
→
Assertion(A): Central Bank is also called as 'Bankers Bank'.
Reason(R): Central Bank keeps the cash balances of commercial banks and gives loans to them on requirements, in the same manner as the commercial banks do for its consumers.
→
Assertion(A): Central Bank is also known as the Bank of Issue.
Reason(R): Central Bank of India (RBI) enjoys the sole monopoly of issuing currency notes.
→
Statement (1): Bank rate is the rate of interest at which Central Bank lends to the commercial banks for long term.
Statement (2): Repo rate is the rate of interest at which Central Bank lends to commercial banks for their short term requirements.
→
→