Law of Supply and Demand Quiz

Match the following

• use of science to develop new products for producing and distributing goods and services

• quantity supplied

• upward-sloping line that graphically shows the quantities supplied at each price

• technology

• table showing quantities supplied at a different price

• law of supply

• amount of a good or service that a producer is willing and able to supply at a specific price

• supply curve

• economic rule stating that price and quantity supplied move in the same direction

• supply schedule

According to the law of supply, as the price rises for a good, ....

• quantity supplied decreases

• consumers stop buying it

• quantity supplied increases

• manufacturers stop producing it

Prices on goods and services are determined...

• only by demand

• only by supply

• both by demand and supply

• neither by demand nor supply

The main difference between a supply curve and demand curve is that a supply curve, the relationship between price and quantity supplied is

• a direct one

• an indirect one

• an inverse one

• nonexistent

The law of diminishing returns results in

• a lower costs for expanding production

• additional workers increasing the total output of goods

• a decrease in the total output of good

• an increase in the total output of goods but at a redced rate

The use of technology to produce and distribute goods will

• not affect supply

• increase supply

• decrease supply

• move the supply curve to the left