Law of Supply

For the law of supply, the relationship between price and quantity supplied is...

• Inverse

• Direct

• Unaffected

• Indirect

Supply refers to the __________ and ________ to produce and offer to sell different quantities of a good at different prices during a specific time period.

• willingness, efficiency

• willingness, ability

• efficiency, ability

• system, ability

A vertical supply curve represents a good that is...

• perfectly inelastic in supply
• elastic in supply
• inelastic in supply
• perfectly elastic in supply

The sum of all firm supply curves is represented by the:

• Manufacturing supply curve

• Aggregate manufacturing curve

• Market supply curve
• Added supply curve

Which would NOT shift a supply curve to the right?

• A producer finds a cheaper resource used to make the good

• A producer discovers new technology that lowers per-unit cost of the good

• A producer is given a tax cut on the given good

• A producer is told that the government is removing a subsidy for the good

A legal limit on the number of units of an import that can enter the country:

• subsidy

• quota

• tariff

• embargo

A financial payment by government to promote certain actions:

• quota

• embargo

• tariff

• subsidy

When quantity supplied changes by a greater percentage than price, supply is:

• Inelastic

• Elastic

• Unit-Elastic

• Irrelevant

When quantity supplied changes by a smaller percentage than price, supply is:

• Elastic

• Inelastic

• Unit-Elastic

• Unaffected

When a good's quantity supplied is greater than its quantity demanded, __________ exists:

• Deficit

• Surplus

• Shortage

• Equilibrium