Supply Quiz

What is supply?

• The amount of a good or service that is available

• The amount of money a producer makes

• The demand for a good or service

• The cost of producing a good or service

According to the law of supply, what happens to quantity supplied as prices increase?

• Quantity supplied goes up

• Quantity supplied goes down

• Quantity supplied remains the same

• Quantity supplied is unpredictable

What is the goal of supply?

• To maximize profit

• To minimize cost

• To meet consumer demand

• To achieve market equilibrium

What does a supply schedule describe?

• How much of a good is offered for sale at one specific price

• How much profit a producer makes at different prices

• How much demand there is for a good at different prices

• How much it costs to produce a good at different prices

What do supply curves show?

• The relationship between prices and quantities supplied

• The relationship between prices and demand

• The relationship between prices and production costs

• The relationship between prices and consumer preferences

What is the difference between a change in quantity supplied and a change in supply?

• A change in quantity supplied is caused by a change in price, while a change in supply is caused by a factor other than price

• A change in quantity supplied is caused by a factor other than price, while a change in supply is caused by a change in price

• A change in quantity supplied and a change in supply are the same thing

• A change in quantity supplied and a change in supply are both caused by changes in price

Which of the following factors can shift the supply curve?

• Subsidies and taxes

• Consumer preferences

• Market demand

• Production costs

How do subsidies and taxes affect supply?

• Subsidies encourage production, while taxes discourage production

• Subsidies discourage production, while taxes encourage production

• Subsidies and taxes have no effect on supply

• Subsidies and taxes only affect demand

What effect does technology have on supply?

• Improvements in technology increase the ability of firms to supply products

• Improvements in technology decrease the ability of firms to supply products

• Technology has no effect on supply

• Technology only affects demand

How does the number of sellers affect supply?

• The more sellers there are, the higher the supply

• The more sellers there are, the lower the supply

• The number of sellers has no effect on supply

• The number of sellers only affects demand