G 11 Trimester 2 Revision

Supply is defined as:

• The quantity of goods and services customers want

• The quantity supplied varies with price

• The quantity produced by a supplier

• The ability and willingness of firms to provide goods at a given price in a given time

Which of the following would case a shift in supply?

• Substitutes

• Income

• Income tax

• Subsidies

Which of the following would NOT cause a shift in supply?

• Indirect taxes

• Interest rates

• Weather

• Productivity

If the market price for a good or service is low, would you expect suppliers to produce more or less products?

• More

• Less

Which of the following would lead to a rightward shift of the supply curve for cars?

• A fall in the price of cars

• A new technological development

• An increase in wages paid to car factory worker

• An increase in the price of steel

What is the difference between a change in supply, and a change in quantity supplied?

• A change in price causes a change in quantity supplied.  One of the determinants of supply causes a change in supply
• A change in price is caused by Supply
• Supply is not influenced by anything
• Prices of goods are set by the government authority in a mixed market economy

Which of the following is NOT one of the determinants of supply?

• Change in cost of resources/inputs
• Change in number of sellers
• Substitutes
• Change in technology

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

• Cost of resources
• Number of sellers
• Change in expectations
• Change in technology

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. 

• Government regulation
• Change in number of sellers
• Change in income
• Change in expectations

Some of the scare resources needed in producing double cheeseburgers come from cows (beef, milk).  So when cattle prices rise due to Mad Cow disease, this will negatively impact supply.  Which is correct about double cheeseburgers?

• Supply decreases due to an increase in the cost of inputs
• Supply increases due to a decrease in the cost of inputs