The law of supply states that:
A) Price and quantity supplied are directly related
B) Price and quantity supplied are inversely related
C) Price and quantity demanded are inversely related
D) Price has no effect on quantity supplied
When the price of a good rises, the quantity supplied:
A) Decreases
B) Increases
C) Remains the same
D) Becomes inelastic
What happens when the price of a good falls, according to the law of supply?
A) The quantity supplied increases
B) The quantity supplied decreases
C) The supply curve shifts left
D) The supply curve shifts right
Which of the following is NOT a factor that affects the law of supply?
A) Production cost
B) Technology
C) Price of related goods
D) Consumer preferences
An increase in production costs will:
A) Increase the quantity supplied
B) Decrease the quantity supplied
C) Shift the supply curve to the right
D) Have no effect on supply
If technology improves, what happens to the supply of a good?
A) It decreases
B) It increases
C) It remains unchanged
D) It becomes unpredictable
Which of the following factors can cause a shift in the supply curve?
A) Changes in consumer income
B) Changes in the price of the good
C) Changes in input prices
D) Changes in the demand for the good
If the price of a substitute good rises, what happens to the supply of the original good?
A) It increases
B) It decreases
C) It remains unchanged
D) It becomes inelastic
According to the law of supply, a higher price will generally result in:
A) A leftward shift of the supply curve
B) A rightward shift of the supply curve
C) A decrease in quantity supplied
D) An increase in quantity supplied
What effect does an increase in the number of suppliers in the market have on supply?
A) Decreases supply
B) Increases supply
C) Shifts the supply curve to the left
D) Shifts the supply curve to the right
The law of supply assumes that all other factors remain:
A) Fixed
B) Variable
C) Unaffected by price
D) Independent of quantity supplied
What is the relationship between price and quantity supplied according to the law of supply?
A) Inverse
B) Positive
C) Neutral
D) Unrelated
Which of the following would NOT cause a shift in the supply curve?
A) A change in the price of the good
B) A change in government policy
C) A change in resource availability
D) A change in technology
An increase in taxes on production will:
A) Increase supply
B) Decrease supply
C) Have no effect on supply
D) Shift the supply curve to the right
If a firm expects future prices to rise, what will happen to its supply today?
A) It will decrease
B) It will increase
C) It will remain unchanged
D) It will become more elastic
If the price of inputs like labor and raw materials decreases, the supply of a good will:
A) Increase
B) Decrease
C) Remain unchanged
D) Become inelastic
Which of the following is an example of a supply-side factor affecting supply?
A) A change in consumer tastes
B) A change in government regulations
C) A change in income levels
D) A change in advertising
Which of the following would likely cause a decrease in the supply of a good?
A) A decrease in production costs
B) An increase in the number of suppliers
C) A technological advancement
D) A rise in the price of inputs
A leftward shift in the supply curve indicates:
A) An increase in supply
B) A decrease in supply
C) A decrease in demand
D) An increase in demand
What does the law of supply primarily describe?
A) The behavior of consumers
B) The relationship between price and demand
C) The relationship between price and quantity supplied
D) The influence of taxes on supply
Which of the following is true of the supply curve?
A) It is always upward sloping
B) It is always downward sloping
C) It is vertical
D) It shifts with changes in demand
An increase in the price of a good causes:
A) A decrease in supply
B) A decrease in quantity supplied
C) An increase in supply
D) An increase in quantity supplied
Which of the following will not affect the supply of a good?
A) Technology improvements
B) Changes in government policies
C) Changes in consumer preferences
D) Changes in input prices
The law of supply suggests that suppliers are willing to offer more of a good:
A) When its price falls
B) When its price rises
C) Regardless of price
D) When demand decreases
Which of the following factors affects the supply of a good by altering the cost of production?
A) Price of the good
B) Price of related goods
C) Input prices
D) Consumer preferences
An increase in the availability of labor will:
A) Decrease the supply of goods
B) Increase the supply of goods
C) Have no effect on supply
D) Shift the supply curve to the left
Which of the following would lead to a decrease in the supply of a good?
A) A technological breakthrough
B) A decrease in the cost of production
C) A decrease in input prices
D) A rise in wages for workers in the industry
