Supply Determinants

Identify the correct determinant of supply.
Example: If airlines expect prices for airline tickets to fall in September when families are less likely to travel due the school calendar, they will supply more during the summer months when they can charge higher fares.

• Change in income

• Change in number of sellers

• Expectations

• Change in technology

Identify the correct determinant of supply.

Example: If the government requires factories to reduce pollution, complying will initially increase costs of production in the market and reduce supply.

• Government regulation

• Cost of resources

• Worker productivity/motivation

• Change in technology

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

Which government tool can cause changes in supply levels and force the supply curve to shift?

• taxes

• subsidies

• regulations

• all of these

The Gov't has the ability to affect supply. When they raise ​ (a)   it makes production more costly and therefore could lead to lower supply levels.

• taxes

• subsidies

• regulations

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

If there is a shortage, what will price do?

• Price will increase.

• Price will shift to the right.

• Price will stabilize.

• Price will exponentially decrease.

Identify the correct determinant of supply. Example: If a new technology is developed that reduces production costs, what will happen to the supply of goods?

• A) Supply will increase

• B) Supply will decrease

• C) Supply will remain the same

• D) Supply will stop completely

Which of the following is a determinant of supply that involves the number of producers in the market?

• A) Change in consumer preferences

• B) Change in number of sellers

• C) Change in technology

• D) Change in income

If the cost of raw materials decreases, what is the likely effect on supply?

• A) Supply will increase

• B) Supply will decrease

• C) Supply will remain unchanged

• D) Supply will stop