Economics Chapter 5: Supply

What concept does this image show?

• A production possibilities schedule

• A market demand curve

• A supply schedule

• Supply elasticity

How many cases of supply elasticity are there?

• Four

• Three

• Two

• One

Which is an example of technology increasing productivity?

• A new computer system crashes and work comes to a halt.

• Management trains and motivates workers to increase their output.

• New packaging looks better but does nothing to reduce costs.

• A new machine in a factory is twice as fast as its predecessor.

Which is the only factor that would cause a change in quantity supplied?

• Change in price

• Change in cost of resources

• Change in cost of technology

• Change in government regulations

Which is the best paraphrase of the Law of Supply?

• More will be offered for sale at lower prices than at higher prices.

• Supply is affected only by demand.

• More will be offered for sale at high prices than at lower prices.

• The quantity offered for sale at all possible prices in a market changes frequently.

A change in the number of sellers affects

• the elasticity of supply.

• only the market supply curve.

• only the change in price.

• only the Law of Supply.

Which change would you see in the supply curve if there were a change in supply?

• .A downward shifting curve

• A flattened line

• A sharper curve

• A shift to the left or right

Which is an example of a change in quantity supplied?

• Because the market price went up, a producer made 10 more items to sell.

• If a crop is damaged in a bad storm, the farmer will have less to offer.

• If taxes go up, a business plans to produce less.

• If the cost of doing business is high, a producer changes location.

Which is true of an individual supply curve?

• It demonstrates that as price goes down, the quantity supplied will go up.

• It graphically represents the data in a supply schedule.

• It is the same as the market supply curve.

• It shows how costs affect production.

Which statement about elasticity is true?

• If a firm adapts quickly to new prices, its supply is likely inelastic.

• If a company takes a long time to adjust to production changes, its supply is likely elastic.

• If a company can make changes to production quickly, its supply is likely elastic.

• If a firm adapts slowly to new prices, its supply is elastic.