Supply

Question 1

Sugar is an input used to produce candy bars, if the price of sugar increases what happens?

Answer 1

The supply of candy bars will decrease

Question 2

On a supply graph, which axes are price & quantity on?

Answer 2

Price = y; quantity = x

Question 3

What does the law of supply state?

Answer 3

As price increases, quantity increases

Question 4

Why does the supply slope curve upward?

Answer 4

Direct relationship between price and quantity supplied

Question 5

What would a new technology that reduces the cost of producing shoes cause?

Answer 5

Supply curve for shoes shifts to the right

Question 6

Define supply

Answer 6

The quantity of a good or service that producers are willing and able to offer for sale at each possible price during a given time period

Question 7

Define profit

Answer 7

The difference between the cost of producing and the price received for selling

Question 8

What is a shift along the curve and what does it reflect?

Answer 8

Change in the quantity supplied; reflects change in prices

Question 9

What is a shift of the curve & what does it reflect?

Answer 9

Change in supply; reflects change in market conditions