WorksheetsSupply and Law of Supply
Total questions: 25
Worksheet time: 25mins
When producers offer more of a good as its price increases and less as its price falls, this defines the
law of demand
law of supply
change in demand
change in supply
The willingness and ability of a producer to make a product is referred to as
quantity supplied
quantity demanded
supply
demand
Movement along a supply curve demonstrates
a change in quantity supplied
a change in quantity demanded
a change in supply
a change in demand
Identify the correct determinant of supply.
Example: As the demand for DVDs decreased due to consumer preference for streaming movies, the market price for DVDs fell. This lower market price caused sellers to leave the DVD market and supply decreased.
Government regulation
Change in number of sellers
Change in income
Change in expectations
For the law of supply, as price rises, what happens to quantity supplied?
it goes up
it goes down
it stays the same
it is not effected
The law of supply says that
Price and Quantity are DIRECTLY related
Supply never changes
Price and Quantity are indirectly related
There is a direct, or positive, relationship between the price of a good or service and the quantity supply of that good or service
Buying Power
Law of supply
Law of demand
Complementary Good
The Law of Supply states that when the price of a good INCREASES, quantity supplied (Qs)
Increases
Decreases
What does the law of supply and demand state?
As the price increases, the quantity demanded decreases, and the quantity supplied increases.
As the price increases, both the quantity demanded and supplied decrease.
As the price decreases, the quantity demanded and supplied both increase.
As the price decreases, the quantity demanded decreases, and the quantity supplied increases.
When prices rise, supply levels will also increase. If prices drop, supply will also fall.
law of supply
law of demand
determinant of supply
cost of production
The law of supply states that if the price of CD’s rise, suppliers will
Supply more CDs
Supply fewer CDs
Quantity supplied will not change
The Law of Supply states that when the price of a good DECREASES, quantity supplied (Qs)
Increases
Decreases
The law of supply states that producers are willing and able to supply more of a good or service at _________ prices and
supply less of a good or service at __________ prices.
higher, higher
lower, higher
higher, lower
lower, lower
For the law of supply, as price rises, what happens to quantity supplied?
it goes up
it goes down
it stays the same
it is not effected
The Law of Supply is stated in these two ways (choose 2)...
When prices INCREASE producers make LESS of a product
When prices INCREASE producers make MORE of a product
When prices DECREASE producers make MORE of a product
When prices DECREASE producers make LESS of a product
What does the Law of Supply say about higher priced items?
Producer will be willing to produce more of them
More people will want them
Fewer people will want them
producers will be willing to produce fewer of them
Law of Supply - as prices rise, quantity supplied (a)
rises
falls
does not change
According to the law of supply, if there was an increase in the market price of the "Industrial Blue" Jordan 4 shoes, the shoe company Nike would...
Increase the supply of the "Industrial Blue" Jordan 4 shoes
Decrease the supply of the "Industrial Blue" Jordan 4 shoes
Increase the demand of the "Industrial Blue" Jordan 4 shoes
Decrease the demand of the "Industrial Blue" Jordan 4 shoes
Identify the correct determinant of supply.
Example: If airlines expect prices for airline tickets to fall in September when families are less likely to travel due the school calendar, they will supply more during the summer months when they can charge higher fares.
Change in income
Change in number of sellers
Expectations
Change in technology
Identify the correct determinant of supply.
Example: If the government requires factories to reduce pollution, complying will initially increase costs of production in the market and reduce supply.
Government regulation
Cost of resources
Worker productivity/motivation
Change in technology
what is upward movement along the same supply curve called?
increase in supply
decrease in supply
extension in supply
contraction in supply
What is the primary factor that causes a movement along the supply curve?
A change in consumer preferences
A change in the price of the good
A change in technology
A change in government policy
Which of the following best describes the law of supply?
As the price of a good increases, the quantity supplied decreases
As the price of a good decreases, the quantity supplied increases
As the price of a good increases, the quantity supplied increases
The quantity supplied is independent of the price
What happens to the supply of a product if the cost of production decreases?
Supply decreases
Supply increases
Supply remains unchanged
Supply becomes perfectly elastic
If a new technology reduces the cost of production for smartphones, what is the likely effect on the supply curve for smartphones?
The supply curve shifts to the left
The supply curve shifts to the right
There is a movement up along the supply curve
There is a movement down along the supply curve
