U3L2b HW Econ: Supply

The law of supply states that, all else being equal, an increase in price results in an increase in what?

• Demand

• Supply

• Equilibrium

• Production cost

Differentiate between a change in quantity supplied and a change in supply.

• A change in quantity supplied refers to a movement along the supply curve due to a change in price, while a change in supply refers to a shift of the entire supply curve due to factors other than price.

• A change in quantity supplied refers to a shift of the entire supply curve due to factors other than price, while a change in supply refers to a movement along the supply curve due to a change in price.

• Both terms refer to the same concept and can be used interchangeably.

• A change in quantity supplied is caused by changes in consumer demand, while a change in supply is caused by changes in production technology.

What does the term 'Supply' refer to in economics?

• The amount of a product available

• The demand for a product

• The price of a product

• The quality of a product

The Law of Supply states that, all else being equal, an increase in price results in an increase in what?

• Demand

• Supply

• Equilibrium

• Scarcity

What is one of the shifters of supply related to resources?

• Prices/Availability of inputs (resources)

• Consumer preferences

• Government regulations

• Technological advancements

Which shifter of supply involves the number of businesses in the market?

• Number of Sellers

• Price of Related Goods

• Consumer Preferences

• Technology

What expectation can influence future supply?

• Expectations of Future Profit

• Expectations of Future Loss

• Expectations of Future Demand

• Expectations of Future Costs

At what price is the quantity supplied 30?

• $3

• $2

• $4

• $5

Fill in the blank: When the price of milk is $1, the quantity supplied is ____.

• 10

• 5

• 15

• 20

According to the graph, what happens to the supply of milk when there is an increase in supply?

• A) Prices increase

• B) Prices decrease

• C) Prices remain the same but more milk is produced

• D) Prices remain the same and less milk is produced