Supply Review Quiz

What is the definition of 'Supply'?

• The quantities of a product or service that a firm is willing and able to make available for sale at all possible prices

• The amount of money a consumer is willing to pay for a product

• The total number of consumers in a market

• The price at which a product is sold

Fill in the blank: Supply is the quantities of a product or service that a firm is ______ and ______ to make available for sale at all possible prices.

• willing; able

• forced; required

• hesitant; unable

• unwilling; reluctant

According to the Law of Supply, what happens to the quantity of goods supplied when the price increases?

• Quantity supplied decreases

• Quantity supplied increases

• Quantity supplied stays the same

• Quantity supplied disappears

According to the Law of Supply, what happens to the quantity of goods supplied when the price decreases?

• Quantity supplied increases

• Quantity supplied decreases

• Quantity supplied stays the same

• Quantity supplied doubles

Fill in the blank: The Law of Supply states that the quantity of goods supplied will be greater at a ______ price than it will at a lower price.

• higher

• lower

• fixed

• average

The Law of Supply states that as price increases, the quantity supplied increases.

• True

• False

Which of the following best describes a supply schedule?

• A table that shows the quantities of a good or service that would be supplied by a firm at different prices

• A table that shows the demand for a good at different prices

• A chart showing the cost of production

• A list of goods supplied in a market

What does the supply curve represent?

• The relationship between demand and price

• A graphic representation of the quantities that would be supplied at each price

• The total revenue at each price

• The cost of production at each quantity

According to the supply curve graph, what is the price when the quantity supplied is 6?

• 6

• 4

• 8

• 10

According to the supply curve graph, what is the quantity supplied when the price is 4?

• 3

• 1

• 5

• 7