5. The Supply Curve

What happens to the quantity of oil supplied when the price increases?

• It disappears.

• It decreases.

• It stays the same.

• It increases.

Why is it cheaper to extract oil in Saudi Arabia compared to the U.S.?

• The oil is more expensive.

• The oil is deeper.

• The oil is closer to the surface.

• The oil is not available.

What happens to suppliers with higher extraction costs as oil prices rise?

• They stop producing.

• They reduce prices.

• They become profitable.

• They leave the market.

What does the supply curve show about suppliers' behavior?

• How they reduce supply.

• How they ignore price changes.

• How they increase demand.

• How they respond to price changes.

What is the next topic after understanding the supply curve?

• Demand Curve

• Market Entry

• Price Determination

• Equilibrium