Economics November 14, 2022

The Law of Supply states that..

• As the price of a good rises, producers make less of that product. (Supply is less)

• As the price of a good rises, producers make more of that product. (Supply is more)

• As the price of a good decreases, producers make more (Supply is more)

• none of these

When the price of a product increases and quantity demanded decreases, the product's demand curve is..

• Elastic

• Inelastic

An inelastic demand curve shows that there will be little change in quantity demanded no matter how high the price is raised.

• True

• False

There is a mathematic formula for determining the elasticity of a product/demand.

• True

• False

Why does a firm need to know whether a demand for it's product is elastic or inelastic?

• To make smart pricing decisions and to accurately estimate revenues.

• To know how many workers to hire.

• both of these

Supply is the amount of a good or service available.

• True

• False

The amount of a product the producer is willing to supply and sell at a specific price is called..

• demand

• supply

• quantity supplied

• none of these

If a firm is making a profit from a particular good or service and the price rises, the firm will usually decide to produce more.

• True

• False

This shows the relationship between price and quantity supplied for a good or service and reflects price...

• supply schedule

• law of supply

• demand curve graph

How many workers hired by a firm will affect its overall production.

• True

• False