YouTube Video Supply Review

What is the definition of supply in economics?

• The quantity of a good or service that consumers are willing and able to purchase at a given price in a given time period

• The quantity of a good or service that producers are willing and able to produce at a given price in a given time period

• The quantity of a good or service that producers are willing and able to purchase at a given price in a given time period

• The quantity of a good or service that consumers are willing and able to produce at a given price in a given time period

What is the law of supply?

• There is no relationship between price and quantity supplied

• There is a random relationship between price and quantity supplied

• There is a direct relationship between price and quantity supplied

• There is an inverse relationship between price and quantity supplied

What happens to quantity supplied when the price increases?

• Quantity supplied is unpredictable

• Quantity supplied remains the same

• Quantity supplied decreases

• Quantity supplied increases

What is the term used when supply increases due to a price increase?

• Extension of supply

• Expansion of supply

• Contraction of supply

• Reduction of supply

What is the main reason for the direct relationship between price and quantity supplied?

• Consumer demand

• Government regulations

• Profit motive

• Technological advancements

What happens to supply when non-price factors increase?

• Supply remains the same

• Supply increases

• Supply is unpredictable

• Supply decreases

What is the effect of an increase in indirect taxes on supply?

• Supply is unpredictable

• Supply remains the same

• Supply decreases

• Supply increases

How does technology affect supply?

• It has no effect on supply

• It increases supply

• It is unpredictable

• It decreases supply

What is the effect of a subsidy on supply?

• Supply increases

• Supply decreases

• Supply remains the same

• Supply is unpredictable

What non-price factor affects supply without directly influencing costs of production?

• Number of firms

• Productivity

• Weather

• Transport costs