Supply and Law of Supply

The willingness and ability of a producer to make a product is referred to as

• quantity supplied

• quantity demanded

• supply

• demand

A popular musical act announces a concert at a 10,000 seat venue. Prices for tickets skyrocket so the venue announces that there will be 500 standing room only tickets offered. What concept does this demonstrate?

• elastic supply

• inelastic supply

• change in supply

• change in quantity supplied

A hurricane wipes out an orange crop in Florida, sharply affecting the supply of oranges. Which chart demonstrates this concept?

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A decrease in supply is demonstrated by which of the following?

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Which of the following is NOT one of the determinants of supply?

• Change in cost of production/resources

• Change in number of sellers

• Substitutes

• Change in technology

Movement along a supply curve demonstrates

• a change in quantity supplied

• a change in quantity demanded

• a change in supply

• a change in demand

When producers offer more of a good as its price increases and less as its price falls, this defines the

• law of demand

• law of supply

• change in demand

• change in supply

Which of the following supply curves demonstrates a decrease in the quantity supplied?

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Identify the correct determinant of supply.

Example: If the government requires factories to reduce pollution, complying will initially increase costs of production in the market and reduce supply.

• Government regulation

• Cost of resources

• Worker productivity/motivation

• Change in technology

Identify the correct determinant of supply:

Example: If the cost of electricity used to power an automotive factories falls, the supply of cars in the market increases

• Cost of production/resources

• Number of sellers

• Change in expectations

• Change in technology