Supply Curve

What is the law of supply?

• As the price of a good or service increases, the quantity supplied by producers decreases.

• The law of supply only applies to services, not goods.

• As the price of a good or service increases, the quantity supplied by producers also increases, and vice versa.

Name one factor that can affect the supply curve.

• Advertising

• Trends

• Number of Producers

A bakery experiences a rise in the cost of flour and sugar. How does this affect the bakery's supply curve for bread?

• It will decrease, or shift to the left.

• It will not change.

• It will increase, or shift to the right.

Movement along the supply curve is caused by a change in ________.

• technology

• price

• weather

How does an improvement in production technology affect the supply curve?

• The supply curve shifts to the left

• The supply curve shifts to the right

• The supply curve does not change

How do expectations of future prices affect the supply curve?

• The supply curve shifts to the left

• The supply curve shifts to the right

• The supply curve does not change

How does an increase in the number of sellers in the market affect the supply curve?

• The supply curve shifts to the left

• The supply curve shifts to the right

• The supply curve does not change

How do taxes affect the supply curve?

• The supply curve shifts to the left

• The supply curve shifts to the right

• The supply curve does not change

How does a natural disaster affecting raw materials impact the supply curve for products made from those materials?

• The supply curve shifts to the left

• The supply curve shifts to the right

• The supply curve does not change

If the government imposes stricter regulations on manufacturing, how is the supply curve likely to be affected?

• The supply curve shifts to the left

• The supply curve shifts to the right

• The supply curve does not change