If the market supply curve for a product shifts rightwards, what is the best possible explanation for this shift?

• Increase in the price of raw materials

• Introduction of a tax on that product by the government

• Introduction of a new technique that makes the production of that commodity cheaper

• An advertising campaign that is successful in promoting the product An advertising campaign that is successful in promoting the product

The Law of Supply states:

• as price increases, supply increases

• as prices decrease, supply increases

• as price increases, quantity demanded decreases

• as price decreases, quantity demanded decreases

What happens to a supply curve when supply goes down?

• moves right

• moves left

• moves upward

• moves downward

How would increase in steel prices affect supply of cars?

• increase in supply

• increase in demand

• decrease in demand

• decrease in supply

Which of the following is NOT one of the determinants (factors) that cause an increase or decrease in supply?

• Change in cost of production

• Change in number of sellers

• Substitutes

• Change in technology

What causes movement along the supply curve?

• Taxes, Subsidies, Regulations, cost of inputs

• ONLY a change in price

number of firms is a determinant of individual supply

• true

• false

• maybe

Lower prices for the same item will _______ suppliers.

• encourage

• deter

• motivate

• scare

Which of the following could cause the price for automobiles to decrease?

• The local factory gives a big raise to its employees.

• A brand new automobile dealership opens in town.

• The price of gasoline falls.

• none of the above

the image represents a:

• demand schedule

• individual supply schedule

• market supply schedule

• none of the above