Economics Supply Quiz

What is the definition of supply in economics?

• The amount of money consumers are willing to pay for a specific good or service.

• The total amount of money available in the economy.

• The number of producers in the market for a specific good or service.

• Total amount of a specific good or service available to consumers.

What are the determinants of supply?

• Market size, advertising, competition

• Demand, consumer preferences, government regulations

• Income, population, inflation

• Price, cost of production, technology, number of sellers, and expectations of future prices.

What is the relationship between price and quantity supplied?

• Positive or direct

• Random or unpredictable.

• No relationship.

• Negative or inverse.

What is the concept of surplus and shortage in supply?

• Surplus in supply refers to a situation where the quantity supplied exceeds the quantity demanded at a given price. Shortage in supply, on the other hand, occurs when the quantity demanded exceeds the quantity supplied at a given price.

• Surplus in supply occurs when the quantity demanded exceeds the quantity supplied at a given price.

• Shortage in supply refers to a situation where the quantity supplied equals the quantity demanded at a given price.

• Surplus in supply refers to a situation where the quantity demanded exceeds the quantity supplied at a given price.

It refers to the quantity of goods and services that suppliers are willing and able to sell at a given time.

• Supply

• Demand

• Quantity Supplied

• Quantity Demanded

If the price of cars fall, carmakers are likely to make...

• Fewer cars

• More cars

• The same amount of cars

Which of the following statements is TRUE about supply?

• If price increases, the supply curve will shift to the right

• If the price falls, the quantity supplied will also fall

• The amount supplied and the price are inversely related

• The supply curve is always horizontal

The Law of Supply states that "When Price increases, quantity supplied _________________."

• decreases

• increases

• disappears

• remains constant

A change in quantity supplied refers to a movement along the supply curve, which is caused only by a change in what?

• Demand

• Supply

• Price

In some circumstance, the supply of a product or service may be fixed. If this is the case, then the supply curve will be shown in which direction?.

If this is the case, then the supply curve will be vertical.

• Vertical

• Horizontal