Supply Determinants and Effects

The video explores the determinants of supply, categorizing them into price and non-price factors. Price changes result in movement along the supply curve, while non-price factors like production costs, technology, and government interventions cause shifts in the curve. The video also discusses the impact of market size and future expectations on supply.

What is the primary difference between price and non-price determinants of supply?

• Price determinants cause a shift in the supply curve.

• Price determinants cause a movement along the supply curve.

• Non-price determinants cause a movement along the supply curve.

• Non-price determinants do not affect the supply curve.

How does an increase in price affect the quantity supplied?

• It decreases the quantity supplied.

• It has no effect on the quantity supplied.

• It causes the supply curve to shift inward.

• It increases the quantity supplied.

What happens to supply when the cost of production factors decreases?

• Supply increases.

• Supply remains unchanged.

• Supply decreases.

• Supply becomes unpredictable.

If the price of a related good increases, what is likely to happen to the supply of the original good?

• Supply of the original good becomes erratic.

• Supply of the original good increases.

• Supply of the original good remains the same.

• Supply of the original good decreases.

How does technological advancement generally affect supply?

• It decreases supply.

• It increases supply.

• It causes supply to fluctuate.

• It has no effect on supply.

What might a producer do if they expect future prices to rise?

• Decrease current production.

• Increase current production.

• Maintain current production levels.

• Stop production entirely.

What is the effect of a government subsidy on supply?

• It has no effect on supply.

• It causes supply to become unstable.

• It increases supply.

• It decreases supply.

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

• Supply becomes unpredictable.

• Supply increases.

• Supply remains unchanged.

• Supply decreases.

What is the impact of a tax on producers?

• It has no effect on supply.

• It decreases supply.

• It stabilizes supply.

• It increases supply.

Which of the following is NOT a determinant of supply?

• Cost of production factors

• Price of the good

• Consumer preferences

• Government interventions