Supply

The Law of Supply states that

• As price increases quantity supplied increases

• As price increases quantity supplied decrease

• As price increases quantity demanded decreases

• As price increases the happier you get 💁🏼

A movement along a supply curve or supply curve is caused by a change in…

• Price of the good itself

• Price of other goods

What is the connection between individual and market supply?

• Market supply is the average of all individual supply

• Market supply is all demand and supply added together

• Market supply is the aggregate of all individual supply

Which of the following are factors that would cause the supply curve to shift outwards? (Choose three)

• Decrease in the price of related goods

• Increase in the cost of production

• Decrease in the cost of production

• Increase in subsidy paid to the producer

• Increase in the price of the good or service

Which of these factors would cause a supply curve to shift to the left? (Choose three)

• The factory has a powercut

• The government increases indirect taxation on the good

• Favourable weather leads to a bumper crop

• The price of a related good decreases

• The firm moves it’s main aim form ‘Profitability’ to ‘Environmental Sustainability’

What does a ‘Limited Supply’ supply curve look like?

• It slopes up as normal at first and then is a vertical line (straight up and down)

• It slopes up as normal at first and then is a horizontal line (straight across)

• It is horizontal across and then slopes upwards as normal

• It is a straight vertical line

A fixed supply curve…(Choose two)

• Is horizontal (straight across)

• Is vertical (straight up and down)

• Is unresponsive to changes in price

• Price cannot be changed

On a Minimum wage supply curve….

• The amount of labour offered below the minimum wage is higher than above the minimum wage

• The amount of labour offered below the minimum wage is zero