Understanding Supply and the Law of Supply

The video tutorial introduces the concept of supply using grapes as an example. It explains the law of supply, emphasizing the relationship between price and quantity supplied. The distinction between supply and quantity supplied is clarified. A grape supply schedule is created, illustrating different scenarios and how they affect the supply curve. The tutorial concludes with plotting the supply curve and discussing its implications.

What does the law of supply state when the price of a good increases?

• The quantity supplied decreases.

• The quantity supplied remains the same.

• The quantity supplied increases.

• The supply curve shifts to the left.

In the context of supply, what does 'quantity supplied' refer to?

• The demand for a product at a given price.

• The amount of a product that producers are willing to sell at a specific price.

• The price-quantity relationship of a product.

• The total supply of a product in the market.

What is the purpose of a supply schedule?

• To show the relationship between price and demand.

• To illustrate the relationship between price and quantity supplied over a time period.

• To determine the equilibrium price.

• To predict future market trends.

How does the supply schedule change when the price per pound of grapes increases from $1 to $2?

• The quantity supplied increases.

• The quantity supplied decreases.

• The supply curve shifts to the left.

• The quantity supplied remains the same.

What is the convention in economics for plotting the supply curve?

• Both price and quantity on the vertical axis.

• Price on the vertical axis and quantity on the horizontal axis.

• Price on the horizontal axis and quantity on the vertical axis.

• Both price and quantity on the horizontal axis.

What happens to the supply curve when the price changes, assuming all else is equal?

• The supply curve remains unchanged.

• There is movement along the supply curve.

• The supply curve shifts to the left.

• The supply curve shifts to the right.

What is the minimum price needed to supply grapes?

• The price at which the demand curve starts.

• The price at which the quantity supplied is zero.

• The price at which the supply curve starts.

• The price at which the supply and demand curves intersect.

What is the significance of the supply curve in economics?

• It predicts future market prices.

• It illustrates the relationship between price and quantity supplied.

• It determines the equilibrium quantity.

• It shows the relationship between demand and supply.

What does a movement along the supply curve indicate?

• A change in the quantity supplied due to a change in price.

• A change in the equilibrium price.

• A shift in the supply curve due to external factors.

• A change in demand.

What will be discussed in the next videos regarding the supply curve?

• The factors that can shift the supply curve.

• The impact of price changes on demand.

• The calculation of equilibrium price.

• The relationship between supply and demand.