Understanding Supply Curve Dynamics

The video tutorial explains the difference between shifting supply curves and moving along them. Movements along the supply curve occur due to price changes, affecting the quantity supplied. Shifts in the supply curve happen when other factors, like production costs or market conditions, change. The video also covers how supply can decrease or increase due to various factors, such as input costs, technological advancements, or changes in the number of firms in the market.

What does the supply curve illustrate in a market?

• The relationship between price and quantity supplied

• The relationship between consumer preferences and supply

• The relationship between demand and supply

• The relationship between cost and profit

What causes a movement along the supply curve?

• A change in government regulations

• A change in production technology

• A change in the price of the good

• A change in consumer preferences

If the price of a good increases, what happens to the quantity supplied?

• It increases

• It decreases

• It fluctuates randomly

• It remains the same

What is a shift in the supply curve indicative of?

• A change in government policy

• A change in the price of the good

• A change in factors other than price affecting supply

• A change in consumer demand

What happens to the supply curve when production costs increase?

• It becomes steeper

• It remains unchanged

• It shifts to the left

• It shifts to the right

Which of the following can cause a decrease in supply?

• A decrease in input prices

• An increase in the number of firms

• Firms exiting the industry

• Technological advancements

How does a technological advancement affect the supply curve?

• It shifts the supply curve to the right

• It makes the supply curve steeper

• It shifts the supply curve to the left

• It causes no change

What effect does a decrease in input costs have on supply?

• It decreases supply

• It increases supply

• It has no effect

• It causes supply to fluctuate

What is the result of more firms entering the market?

• A decrease in demand

• No change in supply

• An increase in supply

• A decrease in supply

What is the main takeaway about supply curves?

• They are unaffected by external factors

• They only shift due to demand changes

• They illustrate the quantity supplied at various prices

• They only change with price