Determinants of Supply - Introductory Practice

When producers offer more of a good as its price increases and less as its price falls, this defines the

• law of demand

• law of supply

• change in demand

• change in supply

A decrease in supply is demonstrated by which of the following?

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A hurricane wipes out an orange crop in Florida, sharply affecting the supply of oranges. Which chart demonstrates this concept?

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A decrease in the price of a good will

• increase supply.
• decrease supply.
• increase quantity supplied.
• decrease quantity supplied.

Which graph below shows the SUPPLY CURVE?

• A
• B
• C
• D

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

When the gov't pays money to businesses, usually to encourage them to produce a certain product..

• taxes

• regulations

• competition

• subsidies

The cost of production includes the price of resources. If resources become more expensive, what will happen to supply levels?

• increase

• decrease

• remain the same

• come to a complete stop