Supply Curve Dynamics and Factors

This video explains the five shift factors of the supply curve: input prices, prices of related goods in production, technological advancements, producer expectations, and the number of firms in the market. It distinguishes between a movement along the supply curve, caused by price changes, and a shift in the supply curve, caused by these factors. The video also provides examples and explains the impact of each factor on supply.

What are the axes on a supply and demand graph?

• Price on both axes

• Quantity on the horizontal axis and price on the vertical axis

• Quantity on both axes

• Price on the horizontal axis and quantity on the vertical axis

According to the Law of Supply, what happens when prices increase?

• Quantity supplied remains the same

• Quantity demanded increases

• Quantity supplied decreases

• Quantity supplied increases

What causes a movement along the supply curve?

• Change in the number of firms

• Technological advancements

• Change in the price of the good or service itself

• Change in input prices

Which of the following is NOT a supply curve shift factor?

• Technological advancements

• Consumer preferences

• Prices of related goods in production

• Input prices

What happens to the supply curve when the cost of a factor of production decreases?

• Becomes vertical

• Remains unchanged

• Shifts to the right

• Shifts to the left

If the selling price of a substitute good increases, what happens to the supply of the other substitute good?

• Remains the same

• Decreases

• Becomes zero

• Increases

How do technological advancements affect the supply curve?

• Shift it to the left

• Shift it to the right

• Make it flatter

• Make it steeper

What do producers do if they expect the price of their good to increase in the future?

• Increase current supply

• Decrease current supply

• Keep current supply constant

• Stop production

What happens to the total supply in a market when the number of firms increases?

• Becomes unpredictable

• Remains the same

• Increases

• Decreases

Which of the following is a correct summary of the video?

• Technological advancements cause a movement along the supply curve.

• A change in the price of a good causes a shift in the supply curve.

• A change in input prices causes a movement along the supply curve.

• A change in the number of firms causes a shift in the supply curve.