Business Startup Motives and Profit Definition
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Questions and Answers

What is the motive of suppliers according to the text?

  • To maintain a balance between cost and profit
  • To maximize profit by selling goods at a high price (correct)
  • To minimize cost by producing goods at a low price
  • To increase production without considering cost or profit

    • What does the supply curve slope upward due to, as per the text?

  • Profit and quantity supplied
  • Costs and quantity supplied
  • Sellers' willingness and ability
  • Costs and profit (correct)

    • What is meant by 'supply' according to the text?

  • The difference between the cost to produce a good or service and the amount it is sold for
  • The willingness and ability of sellers to produce and offer to sell different quantities of a good at different prices (correct)
  • A relation between the price of a good or service and the quantity of the good or service a supplier is willing to sell at that price
  • The number of units of a good produced and offered for sale at a specific price

    • What does the law of supply state, according to the text?

    <p>Price and quantity supplied are positively related</p> Signup and view all the answers

    What creates an incentive to increase the quantity supplied, based on the text?

    <p>Increase in price of the good or service</p> Signup and view all the answers

    What is the quantity supplied of a good?

    <p>The amount of the good that sellers are willing and able to sell</p> Signup and view all the answers

    According to the law of supply, what happens when the price of a good rises?

    <p>The quantity supplied of the good rises</p> Signup and view all the answers

    What factor can cause a shift in the supply curve?

    <p>Change in technology</p> Signup and view all the answers

    What would encourage production according to the text?

    <p>Government subsidies</p> Signup and view all the answers

    How do expectations about future prices affect the supply curve?

    <p>Expecting higher future prices shifts the supply curve to the left</p> Signup and view all the answers

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