B2. The Supply Curve

What does the supply curve represent?

• The relationship between price and the quantity demanded.

• The relationship between price and the quantity supplied.

• The total cost of producing goods.

• The demand for goods at a fixed price.

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

• It decreases.

• It remains constant.

• It increases.

• It fluctuates randomly.

Why does the supply curve slope upward?

• Because suppliers prefer to produce less at higher prices.

• Because higher prices make it profitable to exploit costlier sources of goods.

• Because suppliers can produce goods at lower costs as prices rise.

• Because demand decreases as prices increase.

What happens when oil prices are low?

• The supply curve becomes flat.

• All suppliers can turn a profit.

• Only suppliers with low extraction costs can turn a profit.

• Suppliers with high extraction costs dominate the market.

What topic will be covered in the next video?

• Cost of oil extraction.

• Demand curve analysis.

• Equilibrium in the market.

• Profitability of suppliers.