lesson 2: Understanding the Law of Supply

What happens to supply when production costs decrease?

• Supply decreases

• Supply increases

• Supply remains unchanged

• Supply becomes unpredictable

Which factor is NOT directly related to the law of supply?

• Price of the product

• Consumer income

• Production technology

• Number of suppliers

What is the primary focus of Lesson 2?

• Law of Demand

• Law of Supply

• Market Equilibrium

• Consumer Behavior

Which of the following is a graphical representation of the law of supply?

• Demand curve

• Supply curve

• Price elasticity graph

• Market equilibrium chart

What is one objective of Lesson 2?

• Define the law of demand

• Define the law of supply

• Analyze consumer behavior

• Study market trends

What is the purpose of using supply curves in economics?

• To predict consumer behavior

• To graph the relationship between supply and price

• To determine market demand

• To analyze economic policies

Which of the following best describes the law of supply?

• Supply decreases as price increases

• Supply increases as price increases

• Supply remains constant regardless of price

• Supply fluctuates randomly with price

Which of the following is NOT a factor that affects the supply curve according to the image?

• Effects of technology

• Cost of production

• Competition

• Consumer trends

What is the effect of competition on the supply of a product?

• It shifts the demand curve

• It shifts the supply curve

• It changes consumer preferences

• It affects the price elasticity

Which factor is directly related to the production process affecting supply?

• Cost of production

• Consumer demand

• Advertising

• Seasonal changes