Supply and Law of Supply

A decrease in supply is demonstrated by which of the following?

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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

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

Which of the following supply curves demonstrates a decrease in the quantity supplied?

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Identify the correct determinant of supply:

Example: If the cost of electricity used to power an automotive factories falls, the supply of cars in the market increases

• Cost of production/resources

• Number of sellers

• Change in expectations

• Change in technology

A hurricane wipes out an orange crop in Florida, sharply affecting the supply of oranges. Which chart demonstrates this concept?

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A popular musical act announces a concert at a 10,000 seat venue. Prices for tickets skyrocket so the venue announces that there will be 500 standing room only tickets offered. What concept does this demonstrate?

• elastic supply

• inelastic supply

• change in supply

• change in quantity supplied

Which of the following is NOT one of the determinants of supply?

• Change in cost of production/resources

• Change in number of sellers

• Substitutes

• Change in technology

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

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

• quantity supplied

• quantity demanded

• supply

• demand