Econ Unit 2- Supply Quiz

Which of the following describes the Law of Supply?

• it is an inverse relationship between price and quantity supplied

• it is a direct relationship between price and quantity supplied

• it is an inverse relationship between price and quantity demanded

• it is a direct relationship between price and quantity demanded

The supply curve is

• downward sloping

• upward sloping

• level

• irregular

A government payment to an individual, business, or other group to encourage or protect a certain type of economic activity. Can also be defined as a government payment to a producer so that more is produced.

• taxes

• regulation

• expenses

• subsidy

If the price for a can of coca-cola increased in price from $1.00 to $1.50 which of the following would occur

• the supply curve would shift to the right; increase

• the supply curve would shift to the left; decrease

• the quantity supplied would increase

• the quantity supplied would decrease

If the price for a can of coca cola decreased by 50 cents a can than which of the following would occur?

• the supply curve will shift to the right; increase

• the supply curve will shift to the left, decrease

• the quantity supplied will increase

• the quantity supplied will decrease

Increased government regulations will cause which of the following?

• the supply curve will shift to the right (increase)

• the supply curve will shift to the left (decrease)

• the quantity supplied will decrease

• the quantity supplied will increase

The government increases taxes on a business that produces candy. How would this affect the supply of candy?

• Shift right (supply increases)

• shift left (supply decreases)

• Quantity supplied increases

• Quantity supplied decreases

New technology produces coca-cola cans twice as fast. How would this affect the supply of coca-cola cans?

• Shift right (supply increases)

• shift left (supply decreases)

• quantity supplied increases

• quantity supplied decreases

The price of sugar increases and is a major input into producing coca cola. How would this affect the supply of coca-cola?

• The supply curve shifts right (increases)

• the supply curve shifts left (decreases)

• quantity supplied increases

• quantity supplied decreases

Which of the following are NOT determinants of supply?

• technology

• taxes and subsidies

• input costs/costs of the factors of production (AKA productive resources)

• all of the above are determinants of supply