WorksheetsTheory of Supply Quiz
Total questions: 15
Worksheet time: 8mins
What are the factors affecting the Supply of a good?
Income of consumers
Price of the product
Population growth
None of the above
What does a supply curve show?
A firm will supply more when consumers’ purchasing power increases.
The higher the price, the fewer goods are supplied as costs of production increase.
The lower the price, the more profit is made by the firm.
There is a positive relationship between quantity supplied and price.
The diagram shows a shift in the supply curve for cars in China from S1 to S2. What is the most likely cause of this shift in the supply curve?
A decrease in an indirect tax on petrol in China
An increase in the price of cars in China
An increase in the wages of workers in car factories in China
None of the above
How are the effects of Price changes on supply illustrated diagrammatically?
As a shift of the entire curve
As a contraction in supply
As a movement along a supply curve
As a decrease in quantity supplied
The diagram shows the supply curve for coffee.
The price of coffee increases from P1 to P2. How would this benefit firms in the coffee industry?
.
A higher price gives firms the ability to increase profits
A higher price gives firms the incentive to reduce total fixed costs.
A higher price will encourage consumers to buy more coffee increasing total revenue.
A higher price will encourage less firms to enter the market to supply coffee.
If the government stops subsidy on cocoa production, the supply curve of cocoa will
become vertical.
remain unchanged.
shift to the left.
shift to the right.
What is the difference between Supply and Quantity Supplied?
Supply refers to a point on the curve, while quantity supplied is associated with the entire curve
Supply refers to the demand curve
Supply refers to the entire curve, while quantity supplied is associated with a point on the curve
Supply and quantity supplied are the same
How are the effects of a change in a Non-Price factor on supply illustrated diagrammatically?
As a shift of the entire curve
As a movement along a supply curve
As a decrease in quantity supplied
As a contraction in supply
What does a Rightward Shift in the Supply Curve indicate?
An increase in supply
A decrease in supply
A decrease in price
An increase in price
What would cause the supply curve for an agricultural product to shift to the right?
An increase in the costs of production
An increase in the price of substitutes
An increase in the price of the good
An increase in the productivity of farms
What is the impact of an increase in the number of producers on the supply of a good?
An increase in supply
A decrease in supply
No impact on supply
An increase in price
An increase in market supply is caused by the following factors except
A. An improvement in innovation and technology.
An increase in the price of the commodity
A reduction in the cost of raw materials.
A favourable weather condition.
How do technological advancements affect the supply curve of a product?
They lead to a leftward shift in the supply curve
They lead to a rightward shift in the supply curve
They cause a decrease in quantity supplied
They have no impact on the supply curve
The supply of mangoes is represented as P=0.3Q, where P is the price ($) and Q is the quantity. What is P when Q is 50?
$1.50
$15.00
$150.03
$166.67
A shift in supply curve indicates that a different quantity will be supplied at each possible price because
consumers are willing to pay higher prices.
supply is facing competition.
other factors than price have changed.
price has changed.
