Supply

Basic Economic Concepts

Unit 1.5 Supply

We will describe supply and how it can change.

Multiple Choice

Which of the following describes the law of supply?

• An increase in the price of a good will decrease the quantity demanded.

• The price of a good will increase if production input costs increase.

• An increase in taxes will decrease the supply of a good.

• An increase in the number of sellers will increase the supply of a good.

• An increase in the price of a good will increase the quantity supplied.

Multiple Choice

A leftward shift of the supply curve for computers could be caused by which of the following in the short run?

• • A decrease in the number of computer manufacturers

• A decease in taxes on computer manufacturers

• A decrease in the price of computers

• A decrease in the price of components used to assemble computers

• • An increase in the price of mobile devices, a substitute good

Multiple Choice

If the wage rate of workers producing a good decreases, then which of the following will most likely occur?

• The demand curve will shift to the right.

• The supply of the good will increase.

• The quantity supplied of the good will decrease.

• Demand for the good will increase

• Quantity demanded for the good will decrease.