OCR GCSE Economics - 2.3 - Supply

A decrease in the price of a good will

• Increase supply

• Decrease supply

• Increase quantity supplied

• Decrease quantity supplied

What happens to a supply curve when supply goes down?

• Moves left

• Moves right

• Moves up

• Moves down

When there is a shortage the price will usually?

• Fall

• Rise

• Remain the same

• Become an equilibrium

Which of the following would not shift the supply curve for iPhones?

• An increase in the price iPhones

• A decrease in the number of sellers of iPhones

• An increase in the price of plastic, an input into the production of iPhones

• An improvement in the technology used to produce iPhones

New technology advances the rate at which furniture can be assembled. Why does this change the supply?

• Changes in numbers of producers

• Changes in expectations

• Change in cost of production

How does an increase in taxes affect production or supply?

• Creates more supply

• Creates less supply

• Creates variable supply

• Does not affect the supply

Which of the following is NOT a determinant of the supply of peanut butter?

• The price of peanuts

• The wages of peanut butter factory workers

• The income of peanut butter consumers

• Existing peanut butter making technology

The cost of producing petrol has increased due to rising energy costs. What happens to the market for petrol?

• Supply for petrol will decrease

• Supply for petrol will increase

• Supply petrol will stay the same

A cause, or determinant, of the change seen in the graph above would be:

• Taxes on steel make it more expensive to produce

• An increase in price led to an increase in quantity supplied

• Sellers expect prices to go down in the future

• Government regulations increase the cost of production

Why does quantity supplied increase as price rises?

• Existing firms produce more AND new firms enter the market

• Existing firms produce less AND firm exit the market

• The supply curve shifts to the left

• Existing firms produce less AND new firms enter the market