Supply and Factors that Affect Supply

In a school bake sale, supply refers to

• how many cookies Liam, Maya, and Rohan are willing to buy.

• how many cookies a producer (a parent) is able and willing to make for sale to students.

According to the law of supply, when Abigail's lemonade stand raises the price of lemonade,

• Abigail will supply less lemonade as the price increases.

• Abigail will supply more lemonade as the price decreases.

• Abigail will supply more lemonade as the price increases.

Henry and Arjun run a business together. For their business, profit serves as

• a discouragement to supply more of a good.

• an incentive to supply more of a good.

When the cost of production for a new toy car increases, Samuel, a toy manufacturer, will experience an

• increase in supply.

• decrease in supply

Abigail started a small business selling handmade crafts. If the government imposes a tax on Abigail's business, she will most likely

• increase the supply of her crafts.

• decrease the supply of her crafts.

Charlotte runs a small bakery. If the government provides a subsidy (a grant/free money) to Charlotte's bakery, it will most likely

• increase the supply of baked goods.

• decrease the supply of baked goods.

Charlotte, Nora, and Kai started a lemonade stand. If they face an increase in competition from other lemonade stands, this will lead to a

• decrease in their lemonade supply.

• an increase in their lemonade supply

• no change in their lemonade supply

Daniel, Elijah, and Jackson started a lemonade stand. They noticed that the cost of lemons, taxes, competition from other lemonade stands, subsidies from their parents, and new lemonade-making technologies can cause

• their lemonade supply curve line to disappear.

• their lemonade supply curve line to shift to the right or left.

Mason started a tech startup and implemented new technology in his business operations. This will usually lead to

• a decrease in supply and shift the supply curve to the left.

• an increase in supply and shift the supply curve to the right.

​ ​ (a)   Something that ​ (b)   or encourages.

• motivates
• Incentive
• discourages
• subsidy