Supply and Law of Supply

When producers offer more of a good as its price increases and less as its price falls, this defines the

• law of demand

• law of supply

• change in demand

• change in supply

The willingness and ability of a producer to make a product is referred to as

• quantity supplied

• quantity demanded

• supply

• demand

Movement along a supply curve demonstrates

• a change in quantity supplied

• a change in quantity demanded

• a change in supply

• a change in demand

Identify the correct determinant of supply.
Example: As the demand for DVDs decreased due to consumer preference for streaming movies, the market price for DVDs fell. This lower market price caused sellers to leave the DVD market and supply decreased. 

• Government regulation

• Change in number of sellers

• Change in income

• Change in expectations

For the law of supply, as price rises, what happens to quantity supplied?

• it goes up

• it goes down

• it stays the same

• it is not effected

The law of supply says that

• Price and Quantity are DIRECTLY related

• Supply never changes

• Price and Quantity are indirectly related

There is a direct, or positive, relationship between the price of a good or service and the quantity supply of that good or service

• Buying Power

• Law of supply

• Law of demand

• Complementary Good

The Law of Supply states that when the price of a good INCREASES, quantity supplied (Qs)

• Increases

• Decreases

What does the law of supply and demand state?

• As the price increases, the quantity demanded decreases, and the quantity supplied increases.

• As the price increases, both the quantity demanded and supplied decrease.

• As the price decreases, the quantity demanded and supplied both increase.

• As the price decreases, the quantity demanded decreases, and the quantity supplied increases.

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