Test: Supply - Year 11 MCQ

The upward slope of the supply curve indicates that as the price of a good or service increases, the quantity supplied by producers also increases, assuming other factors remain constant.

A movement along a supply curve shows how the quantity supplied changes in response to a change in the price of the product, assuming other factors remain unchanged (ceteris paribus).

An increase in the price of a key resource used in production would cause a decrease in the supply of a good, shifting the supply curve to the left.

The market supply curve represents the total quantity of a good or service supplied by all producers in the market at different price levels, whereas an individual supply curve represents the quantity supplied by a single producer.

A decrease in production costs typically leads to an increase in supply. This shifts the supply curve to the right, indicating that more of the good or service will be supplied at every price level.

A shift of the supply curve indicates a change in the quantity of a good or service supplied at every price level due to factors such as changes in production costs, technology, or government policy.

Using straight lines for supply curves simplifies economic analysis by providing a clear visual representation of how quantity supplied changes with price, even though real-world supply may not always follow a straight-line pattern.

Along a supply curve, an increase in price leads to an increase in the quantity supplied, assuming other factors affecting supply remain constant.

Market supply represents the total quantity of a good or service supplied by all producers in the market at different price levels, whereas individual supply represents the quantity supplied by a single producer.

An improvement in production technology typically reduces production costs and increases supply, resulting in a shift of the supply curve to the right.