Supply and Demand Concepts

This video tutorial by the Georgia Department of Education covers the determinants of supply and their representation on supply and demand graphs. It explains the relationship between price and quantity supplied, the impact of government actions, and how supply shifts affect equilibrium. The video also details six key determinants of supply: changes in costs of productive resources, government regulations, number of sellers, producer expectations, technology, and education. The concept of ceteris paribus is introduced to help students analyze market components effectively.

What is the relationship between price and quantity supplied according to the law of supply?

• Variable relationship

• No relationship

• Direct relationship

• Inverse relationship

What happens to the supply line when new technology is introduced to the market?

• It moves down

• It moves up

• It shifts to the right

• It shifts to the left

How does a prolonged drought affect the supply of peanuts?

• Decreases supply

• Increases demand

• Increases supply

• No effect on supply

Which of the following is NOT a determinant of supply according to the Georgia standards?

• Changes in costs of productive resources

• Consumer preferences

• Number of sellers

• Government regulations

What effect does an increase in government regulations typically have on supply?

• Increases demand

• Increases supply

• Decreases supply

• No effect on supply

How does an increase in the number of sellers affect the market supply?

• Increases demand

• Increases supply

• Decreases supply

• No effect on supply

What is the impact of improved technology on the production cost of an item?

• Increases production cost

• Decreases production cost

• No effect on production cost

• Increases demand

What does the term 'ceteris paribus' imply in economic analysis?

• Only one variable changes while others remain constant

• All variables are changing

• No variables change

• All variables remain constant

Why is it important to analyze one variable at a time in economic analysis?

• To focus on consumer behavior

• To simplify complex market interactions

• To increase market complexity

• To ignore other variables

What is the primary purpose of a supply and demand graph?

• To display consumer preferences

• To predict future market trends

• To freeze the market in place for analysis

• To show a dynamic market