When the market supply of a product is greater than the market demand for it, thus causing its market price to fall.
Oops!
Check
Okay!
Check
25
How do taxes, subsidies and the number of sellers / suppliers affect supply?
If taxes go down, supply increases. Subsidies encourage producers to remain in the market. The larger the No of suppliers, the greater the market supply.
Oops!
Check
Okay!
Check
lifesaver
Give 10 points!
Oops!
gift
Win 20 points!
Okay!
fairy
Take points!
5
10
15
20
25
thief
Give points!
5
10
15
20
25
20
Does this graph show elastic or inelastic supply? Why?
Elastic supply because the change in price causes a relatively larger change in the quantity supplied.
Oops!
Check
Okay!
Check
20
Supply is defined as the amount of a ______________ that would be offered for sale at all possible ______________ that could prevail in the market.
Product / prices
Oops!
Check
Okay!
Check
15
What does the equilibrium price represent?
It shows the demand for a product is equal to the supply of the product.
Oops!
Check
Okay!
Check
baam
Lose 20 points!
Oops!
magnet
Take 5 points!
Okay!
shark
Other team loses 20 points!
Okay!
thief
Give points!
5
10
15
20
25
25
Look at the schedule. Which column shows the quantity supplied and which one the quantity demanded? Why?
The column in the middle represents the quantity supplied and the third column shows the quantity demanded because of what the laws of demand and supply state.
Oops!
Check
Okay!
Check
15
When does excess demand occur?
When the market demand for a product is greater than its market supply, thus causing its market price to rise.
Oops!
Check
Okay!
Check
monster
Reset all scores!
Oops!
star
Double points!
Okay!
rocket
Go to first place!
Okay!
banana
Go to last place!
Oops!
15
How does a change in the cost of production / inputs affect supply?
If the price of inputs drops, producers are willing to produce more of a product. If labor or other costs rise, producers will produce less.
Oops!
Check
Okay!
Check
15
Production considerations determine supply elasticity. If a firm can react quickly to higher or lower prices, then supply is likely to be ____________. If the firm takes longer to react to a change in prices, then supply is _______________.
elastic / inelastic
Oops!
Check
Okay!
Check
20
Why does the demand curve illustrate a negative relationship between the price and quantity demanded?
Because the higher the price of a good, the lower the quantity demanded.
Oops!
Check
Okay!
Check
20
Why do you think producers supply more at a higher price?
Because selling a higher quantity at a higer price increases revenue (income/profit)
Oops!
Check
Okay!
Check
15
Supply ______________ is a measure of the way in which quantity supplied responds to a ____________ in price.
