Supply Quiz

When Daniel's lemonade stand increases the price of a cup of lemonade, the quantity of lemonade he is willing to supply also increases. What economic law does this scenario illustrate?

• Law of Demand

• Law of Supply

• Scarcity

• Technology

Mia started a lemonade stand. After paying for the lemons, sugar, and other costs, the money she has left is called what?

• Shortage

• Opportunity Costs

• Costs

• Profit

You are a fabulous baker. The price of flour (a key resource) decreases. What happens to the supply of your bread?

• Increases

• Decreases

• Stays the same

• Scarcity

This month, the US announces new technology capabilities in producing the COVID vaccine. What happens to the supply?

• Increases

• Decreases

• Stays the same

• Opportunity cost

Students return back to campus and Mr. Colin is unable to continue selling girl scout cookies. What happens to supply of cookies in the market?

• Increases

• Decreases

• Stays the same

• Does he really?

Oliver is the mayor of a small town. He is considering different government actions to stimulate the local economy. Which action can lead to an increase in supply?

• Imposing a new tax

• Providing a subsidy to local businesses

• Acquiring a new natural resource

• Increasing the factors of production

Benjamin, Oliver, and Grace are running a small business. Which government action can lead to a decrease in their supply?

• Imposing a tax on their products

• Providing a subsidy for their products

• Increasing resource availability

• Creating a scarcity of resources

Charlotte, Aria, and Arjun are running a lemonade stand. They notice that when they increase the price of their lemonade, they sell less. This is a direct or positive relationship with what law?

• Law of Demand

• Law of Supply

• Law of Attraction

• Law of Trade

Why is there a positive relationship between Supply and price?

• Because of Demand

• Supply and price are related

• At lower prices, profit seeking firms(businesses) have an incentive to produce more.

• At higher prices, profit seeking firms(businesses) have an incentive to produce more.

If there is currently a shortage in lumber (wood), what would happen to the supply of homes in the housing market?

• It would increase

• It would stay the same

• It would decrease

• None of the above