Supply Quiz

Which best represents the "law of supply"?

• The amount of goods available

• Producers offer more of a good at a higher price

• Producers offer more of a good at a lower price

• Consumers want more of a good when the price is low

This image represents:

• The law of demand

• The law of supply

• A supply schedule

• An increase in quantity demanded

This image represents a(n):

• supply schedule

• demand schedule

• demand curve

• supply curve

Why does quantity supplied increase as price rises?

• Existing firms produce more AND new firms enter the market

• Existing firms produce less AND firms exit the market

• The supply curve shifts to the left

• Existing firms produce less AND new firms enter the market

According to the law of supply, the relationship between price and quantity supplied is:

• Direct

• Inverse

• Not correlated

This graph represents a(n):

• Increase in quantity supplied

• Increase in supply

• Decrease in quantity supplied

• Increase in quantity demanded

The movement seen in this curve would best be described as:

• An increase in price led to increased quantity supplied

• An increase in price led to a decrease in quantity demanded

• A decrease in price led to an increase in quantity demanded

• A decrease in price led to decreased quantity supplied

An observer of this graph would say that it represents a(n):

• Decrease in supply

• Decrease in quantity supplied

• Increase in demand

• Increase in quantity supplied

A cause, or determinant, of the change seen in this graph would be:

• An increase in the cost of cocoa beans used in making chocolate

• Government subsidies that make production cheaper

• Using more efficient, automated machinery to reduce production costs

• An increase in the number of suppliers (competitors)

An observer of this graph would say that it represents a(n):

• Increase in supply

• Decrease in supply

• Decrease in quantity supplied

• Increase in quantity supplied