Supply & PES

Fill in the gap (marked ?):

• Demand

• Supply

• XED

• PED

Fill in the gap (marked ?):

• Demand

• Supply

• PED

• YED

Why is the demand curve downward sloping?

• Because quantity demanded is higher when the price is higher

• Because quantity demanded is higher when the price is lower

• Because quantity demanded is lower when the price is lower

• Because price doesn't really matter

Why is the supply curve upwards sloping?

• Because as price goes up, producers are willing to produce more goods

• Because as price goes up, producers are willing to produce less goods

• Because some goods are price inelastic

• Because some goods are price elastic

What's happened here?

• Quantity supplied has decreased even though price has stayed the same

• Quantity supplied has increased even though price has stayed the same

• The price of a good has increased

• The price of a good has decreased

Which of the following might have caused this to happen?

• Good weather / harvest

• Improvements in technology

• Bad weather

• A natural disaster

What's happened here?

• Quantity supplied has decreased even though price has stayed the same

• Quantity supplied has increased even though price has stayed the same

• The price of a good has increased

• The price of a good has decreased

Which of the following might have caused this to happen?

• War

• Improvements in technology

• Bad weather

• A natural disaster

Why might a business not be able to increase the amount of a good it supplies even if the price it could charge has risen sharply? (Tick all correct answers)

• The product it produces takes a lot time to make

• The business might not have any spare capacity at its factory or workplace

• It's difficult to switch production to making this product

• The product can't be easily stored

Which of the following products are likely to be supply inelastic?

• Aircraft carriers

• Grapes

• Economics textbooks

• Bic pens