Supply Assignment

Open Ended

In your own words, explain why suppliers are willing to offer more goods for sale when prices are higher.

Multiple Choice

Why is the law of supply considered a direct relationship between price and quantity supplied?

• Because as price increases, quantity supplied increases

• Because as price increases, quantity supplied decreases

• Because as price decreases, quantity supplied stays the same

• Because suppliers ignore price changes

Multiple Choice

Which of the following best describes a supply curve?

• A chart listing quantities and prices

• A graph illustrating how quantity supplied varies based on price

• A table showing demand at different prices

• A list of sellers in the market

Open Ended

Explain how changes in resource prices and taxes can affect the supply curve. Use examples from the slides to support your answer.

Multiple Choice

Which of the following factors can cause the supply curve to shift to the right?

• Increase in taxes

• Decrease in resource prices

• Removal of subsidies

• Decrease in number of sellers

Fill in the Blanks

A change in quantity supplied in response to a change in price is shown as movement along the

curve.

Open Ended

Compare and contrast elastic, inelastic, and unit elastic supply. What do these terms mean in terms of how supply responds to changes in price?

Multiple Choice

According to the law of supply, what happens to the quantity supplied when the price of a good increases?

• Quantity supplied increases

• Quantity supplied decreases

• Quantity supplied stays the same

• Quantity supplied becomes unpredictable

Open Ended

Summarize the law of supply in your own words and explain how it affects the behavior of sellers in a market.