Supply analysis

What does the supply curve illustrate?

• The correlation between the cost of a product or service and the quantity available

• The correlation between the demand for a product and its price

• The relationship between consumer preferences and disposable income

• The effect of government regulations on market prices

What happens to prices when supply is low according to the supply curve?

• Prices increase

• Prices decrease

• Prices remain constant

• Prices fluctuate unpredictably

How does the supply curve appear for products with more elastic supply?

• Shallower (closer to horizontal)

• Steeper (closer to vertical)

• Vertical

• Horizontal

What causes the supply curve to shift to the right?

• An increase in technology

• A decrease in the number of sellers

• An increase in production costs

• A decrease in the price of substitutes

What is the law of supply and demand?

• A rule stating that the price of a product will reach an equilibrium based on supply and demand

• A rule stating that supply always exceeds demand

• A rule stating that demand always exceeds supply

• A rule stating that prices are determined solely by consumer preferences

What is supply elasticity?

• The degree to which rising prices translate into rising quantity

• The degree to which consumer preferences affect demand

• The degree to which government regulations affect supply

• The degree to which technological advances affect production

What factors can cause the supply curve to shift?

• Changes in production costs, technological progress, and the level of competition

• Consumer preferences and disposable income

• Government regulations and tax environment

• Availability of substitutes and alternatives

Which graph depicts a supply curve?

• A

• B

• C

• D

What causes a movement along the supply curve?

• A change in the cost of production

• A change in the number of suppliers

• A change in technology

• A change in the price of the product

What does a supply curve typically show?

• The relationship between supply and demand

• The relationship between price and quantity supplied

• The maximum price consumers are willing to pay

• The minimum price suppliers are willing to accept