Source: https://www.youtube.com/watch?v=TebUl_Rh0Sg

1/ To be consistent with the law of supply, a graph depicting the relationship between price and quantity supplied will be:

Group of answer choices

Negatively sloped

Horizontal

Positively-sloped

Vertical

2/ According to the law of supply, the quantity of an item supplied will fall as a result of:

Group of answer choices

Decreases in the prices of inputs used to produce the item

An increase in the price of the item

A decrease in the price of the item

An increase in the number of firms producing the item

3/ Which of the following is a correct illustration of the law of supply? As the price of a cow rises:

Group of answer choices

Amish farmers are willing to buy fewer of them.

Livestock breeders are willing to sell fewer of them.

Livestock breeders are willing to sell more of them.

Amish farmers are willing to buy more of them.

4/ Livestock breeder Dennis Wolf says that if the price of a cow were $500, he would "get out of the market" but if the price were $1000 he would "sell half his surplus stock." Wolf's answers illustrate:

Group of answer choices

The law of demand.

The law of supply.

Market equilibrium.

How an auction works.

5/ "The Supply Curve" includes interviews showing that livestock breeders are willing to sell more cows when the price of a cow is higher. The interviews are a correct illustration of:

Group of answer choices

The law of demand.

The principle of the low hanging fruit.

The law of increasing costs.

The law of supply.

6/ According to the law of supply, a very low price for a cow

Group of answer choices

Signals farmers to purchase fewer cows.

Illustrates the workings of Adam Smith's invisible hand.

Signals livestock breeders to raise fewer cows.

Illustrates Benjamin Franklin's principle that time is money.

7/ Which of the following events can be expected to cause an increase in the supply of milk?

Group of answer choices

a decrease in the number of dairy farmers

an increase in the price of milk

a decrease in the price of feed for cows

an increase in the demand for milk

8/ If wages or input prices decrease:

Group of answer choices

The supply curve will become steeper.

The supply curve will stay in place.

The supply curve will shift to the left.

The supply curve will shift to the right.