2/29 Act. 1 Supply & QS

What does the Law of Supply state?

• As the price of a good increases, the quantity demanded increases.

• As the price of a good increases, the quantity supplied decreases.

• As the price of a good increases, the quantity supplied increases.

• There is no relationship between the price of a good and the quantity supplied.

What is a supply curve?

• A graph showing the maximum price consumers are willing to pay for each quantity of a good.

• A graph showing the relationship between the price of a good and the quantity demanded.

• A graph showing the relationship between the price of a good and the quantity supplied.

• A graph showing the total cost of producing different quantities of a good.

Which of the following would cause a movement along the supply curve for a good?

• A change in the technology used to produce the good.

• A change in the number of sellers in the market.

• A change in the price of the good.

• A change in government policy related to the good.

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

• It shifts to the right.

• It shifts to the left.

• It becomes steeper.

• It becomes flatter.

What is the primary reason that the supply curve slopes upwards from left to right?

• Sellers are willing to supply more of a good as its price increases to cover higher production costs.

• Consumers demand more of a good as its price increases.

• Sellers are willing to supply less of a good as its price increases.

• Consumers demand less of a good as its price increases.