Supply Law Quiz

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.

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

Which factor does NOT affect the supply of a good?

• Technology

• Government policies

• Consumer preferences

• Input prices

What happens to the supply curve when there is an improvement in production technology?

• It shifts to the left.

• It shifts to the right.

• It becomes steeper.

• It becomes flatter.

If the government imposes a tax on the production of a good, how does it affect the supply curve?

• The supply curve shifts to the right.

• The supply curve shifts to the left.

• The supply curve becomes steeper.

• The supply curve becomes flatter.

What does a movement along the supply curve represent?

• A change in supply

• A change in the quantity supplied due to a price change

• A shift in the supply curve

• A change in demand

Which of the following would cause a shift in the supply curve to the right?

• An increase in the price of the good

• A decrease in the number of producers

• An increase in production costs

• A technological advancement

How does an increase in the price of raw materials affect the supply of a product?

• Increases supply

• Decreases supply

• Does not affect supply

• Initially decreases, then increases supply

What is the effect of a subsidy on the supply of a good?

• Decreases supply

• Increases supply

• No effect on supply

• Initially increases, then decreases supply

If there is an expectation of higher prices in the future, what is the immediate effect on the supply of a good?

• Supply increases

• Supply decreases

• Supply remains unchanged

• Supply first decreases, then increases

How does the number of suppliers in the market affect the supply curve?

• An increase in the number of suppliers shifts the supply curve to the left.

• An increase in the number of suppliers shifts the supply curve to the right.

• A decrease in the number of suppliers shifts the supply curve to the right.

• The number of suppliers does not affect the supply curve.