Fundamentals of Supply

The law of supply declares which of the following?

• Supply falls as price falls.

• Supply increases as price falls.

• Supply stays the same no matter how price changes.

• Supply falls as prices increase.

What does a business' supply schedule show?

• Elasticity of demand

• How price changes affect demand for a particular consumer

• How price changes affect supply for a market

• The impact of the substitute effect

Which of the following typically happens as prices for a good/service rises?

• Suppliers leave the market.

• Consumers seek more of the good or service to consume.

• Demand becomes increasingly elastic.

• More suppliers enter the market.

Which TWO factors combine to create the law of supply?

• businesses changing their level of production

• demand increases/ decreases

• businesses entering/ exiting the market

• quantities increase

Disco music was popular in the 1990's.

• True

• False