Which of the following is an example of individual supply?
Show model answer
B) The number of bicycles manufactured by a single company This is an example of individual supply because it refers to the output of a single producer.
What happens when the price of a good increases, assuming other factors remain constant?
Show model answer
B) There is a movement up along the supply curve This is because an increase in price leads to a higher quantity supplied, represented by a movement along the supply curve.
Which of the following would cause a shift to the right in the supply curve for coffee?
Show model answer
B) A decrease in the cost of coffee beans This reduces the cost of production, leading to an increase in supply, shifting the supply curve to the right.
If the price of a good decreases, what happens to the quantity supplied, assuming other factors remain constant?
Show model answer
B) The quantity supplied decreases This is because a lower price reduces the incentive to produce and supply the good, leading to a decrease in quantity supplied.
Which of the following is NOT a factor that can cause a shift in the supply curve?
Show model answer
B) Changes in the price of the good Changes in the price of the good cause a movement along the supply curve, not a shift in the supply curve.
What is the law of supply?
Show model answer
B) As the price of a good increases, the quantity supplied increases This is the basic principle of the law of supply.
Which of the following would cause a shift to the left in the supply curve for a good?
Show model answer
C) A decrease in the number of producers This reduces the overall supply of the good, shifting the supply curve to the left.
What is the relationship between the price of a good and the quantity supplied?
Show model answer
A) Directly proportional As the price of a good increases, the quantity supplied also increases, indicating a directly proportional relationship.
Which of the following is an example of market supply?
Show model answer
C) The total production of smartphones by all companies in a country This is an example of market supply because it refers to the total output of a good by all producers in a market.
What happens to the supply curve when there is an improvement in technology?
Show model answer
B) It shifts to the right Improvement in technology reduces the cost of production, leading to an increase in supply and a shift to the right in the supply curve.
If the cost of producing a good increases, what happens to the supply curve?
Show model answer
A) It shifts to the left An increase in the cost of production reduces the supply of the good, shifting the supply curve to the left.
Which of the following would cause a movement down along the supply curve?
Show model answer
B) A decrease in the price of the good A decrease in price leads to a lower quantity supplied, represented by a movement down along the supply curve.
What is the effect of a decrease in the number of producers on the supply curve?
Show model answer
B) It shifts to the left A decrease in the number of producers reduces the overall supply, shifting the supply curve to the left.
Which of the following is a non-price determinant of supply?
Show model answer
B) The cost of inputs The cost of inputs is a non-price determinant of supply, as it affects the cost of production and thus the supply of the good.
What happens to the supply of a good when there is a favourable change in weather conditions for its production?
Show model answer
B) The supply curve shifts to the right Favourable weather conditions reduce the cost of production, leading to an increase in supply and a shift to the right in the supply curve.