What does the Law of Supply state?

• There is a direct relation ship between price and quantity suplied

• There is a hyperbolic relationship between price and quantity supplied

• There is no relationship between price and quantity supplied

• There is an inverse relationship between price and quantity supplied

Which of the following are correct contributing explanations for why the supply curve is upward sloping?

• When producers have more to sell, they charge higher prices

• At higher prices more profit can be made per unit, incentivising entrepreneurs to increase production

• At higher quantities, the cost of production may decrease which is often passed on to consumers in the form of higher perices

• At higher prices, less is demanded

Which of the following are possible reasons for an outward shift in the supply curve of rice?

• Increase in the wages of agriculture labors

• Good rice growing weather

• Less agricultural land available due tomthe urbanisation

• The increasing of costs

The supply curve is always drawn as a straight line

• True

• False

What would happen to the supply curve for economy class airplane tickets if the price of oil increased?

• Inward shift

• Outward shift

• No shift

• Equilibrium

How would an increase in the price of a printer affect the supply curve for ink catridges?

• Inward shift

• Outward shift

• No shift

• Equilibrium

For most goods the demand curve slopes in what direction?

• 
• 
• 
• 

If someone wants to buys something but cannot afford it, they are exhibiting which of the following?

• Neither demand nor effective demand

• Demand but not effective demand

• Effective demand but not demand

• Both demand and effective demand

The Law of Demand states that there is a positive relatinship between price and quantity demanded.

• True

• False

Which of the following is a good which consumers perceive to be better quality when it has a higher prices?

• Veblen good

• Speculative good

• Giffen good

• Inferior good