Supply

What is the meaning of supply?

• Revenue from selling goods and services

• Price of inputs required for production

• Quantity of a commodity a seller is willing to sell at a given price

• Demand for commodities

Which of the following is a determinant of supply?

• Price of the commodity

• Demand for the commodity

• Government regulations

• Consumer preferences

What is a supply function?

• A table showing quantities supplied at different prices

• A graph representing supply and demand

• A function to calculate total revenue

• A mathematical equation showing the relationship between quantity supplied and determinants of supply

According to the law of supply, what is the relationship between price and quantity supplied?

• Random relationship

• Direct relationship

• No relationship

• Inverse relationship

What is a supply schedule?

• A schedule of production costs

• A schedule of demand for a commodity

• A schedule of government policies

• A table showing quantities supplied at different prices

How is a market supply curve derived?

• By subtracting individual supply curves

• By multiplying individual supply curves

• By adding individual supply curves vertically

• By adding individual supply curves horizontally

What causes a rightward shift of the supply curve?

• Change in producer's objective to profit maximization

• Decrease in excise duty

• Use of inferior technology

• Increase in price of inputs

What is the difference between expansion in supply and increase in supply?

• Expansion is a movement along the curve, increase is a shift of the curve

• Expansion is a shift of the curve, increase is a movement along the curve

• They are the same

• None of the above

Which factor causes a decrease in supply?

• Rise in price of other related goods

• Use of better technology

• Decrease in excise duty

• Change in producer's objective to sales maximization

What happens when there is a leftward shift of the supply curve?

• Increase in supply

• Expansion of supply

• Contraction of supply

• No change in supply