EPF 3.2 Review

Why do businesses tend to produce more products when they can sell them at higher prices?

• To reduce production costs

• To increase market competition

• To maximize profits

• To decrease demand

What are some factors that can cause businesses to produce more or less?

• Changes in consumer preferences

• Changes in costs, new technology, or government taxes and help

• Seasonal weather changes

• Employee satisfaction levels

Who is considered a consumer in economic terms?

• A person looking to sell a good

• A person looking to purchase a good

• A person producing a good

• A person distributing a good

Who are producers in the context of supply?

• People looking to purchase a good

• People looking to consume a good

• People looking to sell a good

• People looking to store a good

What factors affect the ability of a business to produce?

• Resources, Costs of Production, and Productivity

• Marketing Strategies and Branding

• Employee Satisfaction and Customer Feedback

• Social Media Presence and Advertising

What happens to current supply if sellers expect higher future profits?

• Increase current supply

• Reduce current supply

• Keep current supply constant

• Eliminate current supply

What is likely to happen to the supply of milk if the price for dairy cows increases drastically?

• The supply of milk will increase.

• The supply of milk will decrease.

• The supply of milk will remain the same.

• The supply of milk will double.