Formative Assessment Option #2 - Supply Lesson #1

A decrease in the price of a good will

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

Which way does a supply curve slope?

• down
• up
• both
• neither

Which graph below shows the SUPPLY CURVE?

• A
• B
• C
• D

How many cup holders are producers willing to supply at a price of $2.50?

• 3,000
• 4,000
• 5,000
• 7,000

The Law of Supply states:

• as price increases, supply increases
• as prices decrease, supply increases

What is the law of supply?

• The lower the price, the larger the quantity produced.

• A smaller the quantity will be produced because the price is higher.

• The lower the price, the smaller the quantity produced.

• Price doesn’t affect the manufacturers production of a good.

Which of these best describes the influence of high prices on the behavior of producers?

• High prices are an incentive for producers to produce more.

• Producers will use fewer raw materials and less labor

• High prices are an incentive for producers to produce less.

• Prices have no incentive for producers.