Supply

Question 1

Which of the following would explain a leftward shift in the supply curve for a product?

AA number of new producers enter the market.

BThe price decrease for an alternative good the same producers can provide.

CProducers are able to charge higher prices for the good.

DThere is an improvement in the machinery used to make the product.

EA new set of regulations that suppliers must follow for making the product begin to be enforced.

Question 2

Which of the following statements describes movement along a supply curve?

AThe market price of a good decreases, leading suppliers to lower their quantity supplied.

BSuppliers decrease their quantity supplied at every price level because of a factor cost increasing.

CSuppliers increase their quantity supplied at every price level because of a factor cost decreasing.

DConsumers increase their quantity demanded in response to a price decrease.

EA government tax increases, causing suppliers to charge more for every quantity of output.

Question 3

As the price increases, the quantity supplied will also increase. This ______ relationship describes the _________.

Adirect; law of demand

Binverse; law of demand

Cindirect; law of supply

Dinverse; law of supply

Edirect; law of supply

Question 4

Market Supply Price S, QuantityMarket Supply of Z Price Quantity