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Supply Review

Practice the important concepts from the lesson by answering the following questions.

  1. Which of the following choices best describes supply?
    1. The amount of a product that would be offered at ALL possible prices
    2. A table that list various quantities at different prices
    3. A graph showing various quantities at different prices
    4. The amount a prouder spends to make a product

    Answer: a. The amount of a product that would be offered at ALL possible prices

  2. If the Law of Supply is in effect, when the price of a good is higher, supply is _______.
    1. stays the same
    2. lower
    3. higher
    4. it could be higher or lower

    Answer: c. higher

  3. A graph which shows the amount a producer will make varies depending on the price consumers will pay is a ____ ____.
    1. supply curve
    2. supply schedule
    3. demand schedule
    4. demand curve

    Answer: a. supply curve

  4. Which of the following gives the best example of the effects shown on an individual supply curve?
    1. All automobile companies deciding to make more full size trucks
    2. A single soft drink company's sales at all possible prices
    3. All cereal manufacturers increasing the amount they produce
    4. All furniture companies decreasing the number of tables they supply

    Answer: b. A single soft drink company's sales at all possible prices

  5. What is a graph that shows the quantity of supply for all producers of a certain good or service at each price that might be used in the market at a given time?
    1. demand curve
    2. individual supply schedule
    3. individual demand curve
    4. market supply graph

    Answer: d. market supply graph

  6. How do economists list quantities and prices?
    1. by using the law of supply
    2. in a demand schedule
    3. in a supply schedule
    4. by using the law of demand

    Answer: c. in a supply schedule

  7. In what direction does a supply curve slope?
    1. down
    2. up
    3. flat
    4. vertical

    Answer: b. up

  8. Supply elasticity is determined by how responsive supply is to changes in ________.
    1. quantity
    2. supply
    3. demand
    4. price

    Answer: d. price

  9. When a small increase in price leads to a large increase in output, supply is ________.
    1. unit elastic
    2. inelastic
    3. elastic
    4. proportional

    Answer: c. elastic

  10. If production of a good is complex and requires much advanced planning, then supply is _______.
    1. proportional
    2. unit elastic
    3. elastic
    4. inelastic

    Answer: d. inelastic

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