2.2 - Law of Supply

What is the Law of Supply?

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

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

• As the price of a good increases, the quantity supplied increases.

• The quantity supplied is unaffected by changes in price.

How does the Law of Supply affect production?

• It decreases production costs.

• It encourages producers to supply more at higher prices.

• It limits the amount producers can supply.

• It has no effect on production.

According to the law of supply, what happens when the price of a good increases?

• Suppliers will offer less of the good.

• Suppliers will offer more of the good.

• The demand for the good decreases.

• The quality of the good decreases.

What does the law of supply state about the relationship between price and quantity supplied?

• As price increases, quantity supplied decreases.

• As price decreases, quantity supplied increases.

• As price increases, quantity supplied increases.

• Price and quantity supplied are unrelated.

What does a market supply schedule show?

• The relationship between price and quantity supplied

• The relationship between demand and supply

• The relationship between cost and profit

• The relationship between production and consumption

What is a market supply curve?

• A graph of the quantity supplied of a good by all suppliers at different prices

• A chart showing the demand for a product

• A table listing the costs of production

• A diagram illustrating consumer preferences

What does the diagram titled "Market Supply Curve" represent?

• The demand curve for a product

• The supply curve for a product

• The cost curve for a product

• The profit curve for a product

What is elasticity of supply?

• A measure of how demand changes with price

• A measure of how quantity supplied reacts to a change in price

• A measure of consumer satisfaction

• A measure of production costs

What is considered inelastic supply?

• Supply that is very responsive to price changes

• Supply that is not very responsive to price changes

• Supply that decreases as price increases

• Supply that increases as price decreases

What characterizes an elastic supply?

• It is very sensitive to changes in price

• It is not affected by changes in price

• It decreases when demand increases

• It remains constant regardless of price