High School Economics: Supply & Law of Supply Quiz Questions

📚 Quick Study Guide

• 📈 Supply: The quantity of a product that producers are willing and able to offer for sale at various prices during a specific period.
• ⚖️ Law of Supply: States that, all else being equal, the quantity supplied of a good rises when the price of the good rises, and falls when the price falls.
• 📝 Supply Curve: A graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. It usually slopes upward.
• 🏭 Factors Affecting Supply: These include: the cost of inputs (labor, materials), technology, expectations about future prices, the number of sellers, and government policies (taxes and subsidies).
• 💡 Change in Supply vs. Change in Quantity Supplied: A 'change in supply' refers to a shift of the entire supply curve (due to non-price factors), while a 'change in quantity supplied' refers to a movement along the existing supply curve (due to a change in price).

🧪 Practice Quiz

1. Which of the following best describes the Law of Supply?
   1. A) As price increases, quantity demanded increases.
   2. B) As price increases, quantity supplied increases.
   3. C) As price decreases, quantity supplied increases.
   4. D) Price and quantity supplied are unrelated.
2. Which of the following factors would NOT cause a shift in the supply curve for wheat?
   1. A) A change in the price of wheat.
   2. B) A new, more efficient fertilizer.
   3. C) An increase in the cost of harvesting equipment.
   4. D) A government subsidy for wheat farmers.
3. If the price of steel increases, what is the likely effect on the supply of cars (assuming steel is a major input in car production)?
   1. A) The supply of cars will increase.
   2. B) The supply of cars will decrease.
   3. C) The supply of cars will remain unchanged.
   4. D) The demand for cars will increase.
4. A technological improvement that reduces the cost of producing smartphones would most likely:
   1. A) Decrease the supply of smartphones.
   2. B) Increase the supply of smartphones.
   3. C) Have no effect on the supply of smartphones.
   4. D) Decrease the demand for smartphones.
5. Which of the following is an example of a 'change in quantity supplied' rather than a 'change in supply'?
   1. A) A new regulation restricts the production of a certain chemical.
   2. B) The price of raw materials used in production decreases.
   3. C) The price of the product increases, leading producers to offer more.
   4. D) A major producer goes out of business.
6. If the government imposes a tax on the production of widgets, what is the likely effect on the supply of widgets?
   1. A) The supply of widgets will increase.
   2. B) The supply of widgets will decrease.
   3. C) The supply of widgets will remain unchanged.
   4. D) The demand for widgets will increase.
7. What happens to the supply curve of ice cream during the winter months?
   1. A) It shifts to the right (increase in supply).
   2. B) It shifts to the left (decrease in supply).
   3. C) It remains the same.
   4. D) It becomes perfectly elastic.