Law of Supply Quiz

If the government imposes a tax on a business, the business will most likely

• Increase Supply

• Refuse to pay the tax

• Decrease Supply

• Do nothing with supply

The greater opportunity to make profit, the more incentive a company has to figure out how to make a profit.

• True

• False

An increase in competition will lead to a ______________.

• Decrease in Supply

• Increase in Supply

• No Change in Supply

• All of the Above

Supply is _________________.

• How much consumers are willing to buy.

• How much a business is able and willing to make for sale to consumers

• The goods that are left over after a sale.

• All of the above.

For businesses, profit serves as _________.

• A discouragement to supply more of a good

• An incentive to supply more of a good.

• An encouragement to give products away for free

• None of the above.

Besides price, what is one of the most important factors that can affect supply?

• The cost of production

• Advertisements

• Weather

If the price for sale of a good falls or decreases then there is more of an incentive to make more of it.

• True

• False

The use of new technology will almost always increase the cost to make something.

• True

• False

A business that makes a good or service is referred to as ________________.

• Supply

• Producer

The law of supply says:

• A producer will supply less as prices of a good increase.

• A producer will supply more as prices of a good decrease

• A producer will supply more as a price of a good increases.