1) The law of supply implies that the supply curve is
B) upward sloping.
C) downward sloping.
2) If the price of flash memory cards increases, then there will be ________ of flash memory cards.
A) a decrease in the supply
B) an increase in the supply
C) an increase in the quantity supplied
D) a decrease in the quantity supplied
3) The law of supply states that other things being equal
A) supply creates its own demand.
B) supply will increase if productivity increases.
C) as price increases, quantity supplied increases.
D) supply will increase to meet demand if demand increases.
4) Other things being equal, the relationship between price and quantity supplied is
5) A movement along a supply curve is induced by a change in
A) input prices.
B) taxes and subsidies.
C) price expectations.
D) the product's own price.
6) The quantity supplied of a particular good is the amount of the good that
A) households are willing to consume at each particular price.
B) firms will actually end up buying at a particular price during a given time period.
C) firms are willing to sell at each price during a particular time period.
D) households want firms to sell at each price during a particular time period.
7) Which of the following represents the law of supply?
A) An increase in the price of a good causes an increase in the supply of that good.
B) An increase in the price of a good causes a rightward shift of the supply curve for that good.
C) An increase in the price of a good causes an increase in the quantity supplied of that good.
D) all of the above
8) An increase in price will lead to an increase in quantity supplied. This statement is
A) the law of supply.
B) the law of demand.
C) untrue always.
D) a normative statement.
9) Which of the following is an example of the law of supply?
A) The price of gum has increased so producers are making more gum.
B) The price of labor has increased and producers decrease supply.
C) The amount of a good purchased increases when the price decreases.
D) Producers provide less of a good when the price increases.
10) According to the law of supply
A) people buy more of a good when the price increases.
B) people buy less of a good when the price decreases.
C) producers provide more of a good when the price decreases.
D) producers provide less of a good when the price decreases.