Practicing Demand & Supply

besides price, supply can shift due to factors that are known as --

• price of resources

• determinants of supply

• demand

• competition

When prices rise, supply levels will also increase. If prices drop, supply will also fall.

• law of supply

• law of demand

• determinant of supply

• cost of production

When the gov't pays money to businesses, usually to encourage them to produce a certain product..

• taxes

• regulations

• competition

• subsidies

If new technology leads to faster and more efficient production, then ___

• supply would increase and the supply curve would shift right

• supply would decrease and the supply curve would shift left

• demand would increase and the demand curve would shift right

• there would be no change

If determinants of supply lead to an increased level of production, the supply curve will shift

• downward

• to the right

• to the left

• directly upward

The cost of production includes the price of resources. If resources become more expensive, what will happen to supply levels?

• increase

• decrease

• remain the same

• come to a complete stop

The motivation for ALL companies to be successful..

• save the world

• feed the children

• social justice

• profit

Once a business has paid all of its costs, the money left over is ___

• revenue

• profit

• supply

• tax

When supply and demand levels are graphed together, the perfect price is where the curves cross, also known as the ___

• cost of production

• factors of production

• command economy

• equilibrium price

Which statement is correct about the Law of Demand?

• When the price of a good decreases, quantity demanded decreases

• When the price of a good decreases, quantity demanded increases