Supply and Law of Supply

Front

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

Back

law of supply

Front

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

Back

supply

Front

Movement along a supply curve demonstrates

Back

a change in quantity supplied

Front

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?

Back

change in quantity supplied

Front

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

Back

Substitutes

Front

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. Options: Cost of production/resources, Number of sellers, Change in expectations, Change in technology.

Back

Cost of production/resources

Front

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. Options: Government regulation, Cost of resources, Worker productivity/motivation, Change in technology

Back

Government regulation

Front

Identify the correct determinant of supply.
Example: As the demand for DVDs decreased due to consumer preference for streaming movies, the market price for DVDs fell. This lower market price caused sellers to leave the DVD market and supply decreased.
Options: Government regulation, Change in number of sellers, Change in income, Change in expectations

Back

Change in number of sellers

Front

Identify the correct determinant of supply.
Example: If airlines expect prices for airline tickets to fall in September when families are less likely to travel due the school calendar, they will supply more during the summer months when they can charge higher fares.
Options: Change in income, Change in number of sellers, Expectations, Change in technology

Back

Expectations

Front

Which of the following is NOT a determinant of supply? Change in cost of production, Technology, Change in number of consumers, Government regulations

Back

Change in number of consumers