10 Questions
What is the motive of suppliers according to the text?
To maximize profit by selling goods at a high price
What does the supply curve slope upward due to, as per the text?
Costs and profit
What is meant by 'supply' according to the text?
The willingness and ability of sellers to produce and offer to sell different quantities of a good at different prices
What does the law of supply state, according to the text?
Price and quantity supplied are positively related
What creates an incentive to increase the quantity supplied, based on the text?
Increase in price of the good or service
What is the quantity supplied of a good?
The amount of the good that sellers are willing and able to sell
According to the law of supply, what happens when the price of a good rises?
The quantity supplied of the good rises
What factor can cause a shift in the supply curve?
Change in technology
What would encourage production according to the text?
Government subsidies
How do expectations about future prices affect the supply curve?
Expecting higher future prices shifts the supply curve to the left
This quiz explores the motives behind starting a business and explains the concept of profit as the difference between the cost of production and the selling price. It also discusses the factors influencing the supply curve, including costs and profit considerations for producers.
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