Understanding Supply in Business

What does the law of supply suggest about the relationship between price and quantity supplied?

• Higher prices lead to higher supply.

• Higher prices lead to lower supply.

• Lower prices lead to higher supply.

• Price does not affect supply.

How might a decrease in production costs affect supply?

• Supply becomes unpredictable.

• Supply remains unchanged.

• Supply is likely to decrease.

• Supply is likely to increase.

What is a potential consequence of a rise in the minimum wage on supply?

• Supply is likely to increase.

• Supply becomes more efficient.

• Supply remains unchanged.

• Supply is likely to decrease.

How can new technology influence the supply of products?

• It decreases production efficiency.

• It increases production costs.

• It allows for more efficient production.

• It has no impact on supply.

What effect does a reduction in indirect taxes have on supply?

• It makes supply unpredictable.

• It has no effect on supply.

• It increases supply.

• It decreases supply.

What was the aim of the sugar tax introduced in the UK?

• To reduce sugar consumption.

• To increase the supply of sugary drinks.

• To decrease the supply of sugar-free drinks.

• To increase sugar consumption.

How do government subsidies typically affect supply?

• They have no effect on supply.

• They decrease supply.

• They make supply unpredictable.

• They increase supply.

What is an example of an external shock that can impact supply?

• A new marketing strategy.

• A change in consumer preferences.

• A natural disaster.

• A decrease in production costs.

How might severe weather conditions affect supply?

• They make supply more efficient.

• They increase the availability of raw materials.

• They have no impact on supply.

• They can disrupt the supply of goods.

What role do government subsidies play in the supply of goods?

• They decrease the quality of products.

• They have no impact on supply.

• They increase production costs.

• They provide financial support to increase supply.