3.2 Supply

Multiple Choice

What are two main factors that affect the ability of a business to produce goods?

• Resources and productivity

• Advertising and branding

• Location and competition

• Customer service and quality

Fill in the Blanks

Supply is the different quantities of a good that sellers are

and able to sell at different prices.

Multiple Select

Which of the following statements about supply is/are correct?

• Supply is the amount producers are willing to sell at different prices.

• Supply is only affected by consumer demand.

• Supply increases as price increases.

• Supply is unrelated to the cost of production.

Open Ended

Explain the law of supply and why higher prices provide an incentive for firms to produce more.

Fill in the Blanks

Subsidies provided by the government generally

the supply of goods.

Multiple Select

Which of the following factors can cause a rightward shift in the supply curve?

• Decrease in input prices

• Increase in the number of sellers

• Higher taxes

• Better technology

Open Ended

Describe how expectations of future profits can influence the current supply decisions of sellers in a market.

Multiple Choice

If sellers expect higher future profits, what are they likely to do with the current supply?

• Reduce current supply

• Increase current supply

• Keep supply unchanged

• Lower prices

Multiple Select

Which of the following are true about the effect of new milking machines on the supply of milk?

• The supply curve shifts to the right

• The quantity supplied increases at every price

• The price of milk increases

• The supply curve shifts to the left

Fill in the Blanks

A decrease in supply means that at the same price,

milk is produced.

Multiple Choice

What are some factors that can cause businesses to produce more or less of a product?

• Changes in costs, new technology, government taxes and help

• Consumer preferences, weather, advertising

• Employee satisfaction, company logo, office location

• Store hours, website design, packaging color

Open Ended

Reflecting on today's lesson about the Law of Supply, what is one question you still have or something you would like to know more about?