Exploring Week 24 Economics Concepts

The video tutorial covers the fundamentals of supply, including how price affects supply, the concept of elasticity, and the costs involved in production. It explains the law of supply, where an increase in price leads to an increase in quantity supplied. The tutorial also discusses elasticity, highlighting how supply can be elastic or inelastic based on time and other factors. It delves into production costs, distinguishing between fixed and variable costs, and explores strategies for profit maximization. Finally, it examines factors that cause changes in supply, such as input costs, government policies, and global events.

What happens to the quantity supplied when prices increase?

• It fluctuates unpredictably

• It increases

• It remains unchanged

• It decreases

What does a supply schedule show?

• The relationship between demand and price

• The relationship between price and quantity supplied

• The total cost of production

• The profit margin of a product

What is the key factor determining whether the supply of a good will be elastic or inelastic?

• Demand

• Time

• Price

• Quantity

What are fixed costs?

• The cost of labor

• Costs that vary depending on production levels

• The cost of raw materials

• Costs that remain constant regardless of production levels

What is marginal cost?

• The cost of all variable inputs

• The cost of all fixed inputs

• The total cost of production

• The cost of producing one more unit of a good

When should a firm shut down production in the short term?

• When fixed costs exceed variable costs

• When total revenue is less than total cost

• When marginal cost is greater than marginal revenue

• When the price of the product increases

How do subsidies affect supply?

• They decrease supply

• They make supply inelastic

• They have no effect on supply

• They increase supply

What is the effect of an excise tax on supply?

• Increases supply

• Decreases supply

• Makes supply more elastic

• Has no effect on supply

What happens to the supply curve when the cost of inputs increases?

• Shifts to the right

• Remains unchanged

• Becomes more elastic

• Shifts to the left

What influences a firm's decision on where to locate its production facilities?

• The availability of raw materials only

• The price of the final product

• The cost of labor only

• The cost of transportation