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
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
monster
Reset all scores!
Oops!
gift
Win 15 points!
Okay!
fairy
Take points!
5
10
15
20
25
baam
Lose 25 points!
Oops!
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
seesaw
Swap points!
Oops!
seesaw
Swap points!
Okay!
shark
Other team loses 20 points!
Okay!
thief
Give points!
5
10
15
20
25
20
Why does the supply curve illustrate a positive relationship between the price and quantity supplied?
Because the higher the price, the higher the quantity supplied.
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
heart
Other team wins 15 points!
Oops!
rocket
Go to first place!
Okay!
fairy
Take points!
5
10
15
20
25
banana
Go to last place!
Oops!
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
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
15
How can a change in productivity and technology cause a change in supply?
Productivity depends on how much workers are motivated.The introduction of a new technology can affect supply by increasing productivity.
Oops!
Check
Okay!
Check
baam
Lose 25 points!
Oops!
gift
Win 25 points!
Okay!
rocket
Go to first place!
Okay!
banana
Go to last place!
Oops!
20
Explain this individual supply curve
At a price of $0.50, producers will offer two slices of pizza for sale. At a price of $1, producers will offer 5 slices of pizza, etc
Oops!
Check
Okay!
Check
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
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
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.
