Supply Curve

Question 1

supply curve

Answer 1

• represents the relationship between the supply (quantity produced) of a product and the price of that product
• businesses want to produce more at higher prices to maximize profits
• the supply curve is the opposite of the demand curve

Question 2

technological advancements

Answer 2

shifts the supply curve tot he right – (away from the origin)
- an increase in the cost of the factors of production – land, labor, capital, or management can cause the supply curve to shift to the left (price increases while quantity stays the same)

Question 3

when the cost for factors of productions increases, supply decreases. this means supply will do what?

Answer 3

shift to the left

Question 4

what will happen if a government decreases its tax on crude oil, thus lowering the price

Answer 4

the supply for gasoline will increase

Question 5

when looking at the supply curve, if an upward-sloping shape to the curve exists, what does an increase in quantity sold mean?

Answer 5

increase in prices

Question 6

which of the following occurs when labor costs increase and the cost to make a product becomes more expensive?

Answer 6

low production of the product

Question 7

note

Answer 7

• an increase (improved tech)
• high quantity (when price decreases) and improved tech)
• industrial revolution (rightward shift)
• low production (price is low)
• opposite of (costumer incentives)
• shift to the left (labor more expensive)