Factors Affecting Changes in Supply Curves
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Questions and Answers

What happens to the quantity supplied when the price falls?

  • It rises
  • It fluctuates
  • It falls (correct)
  • It remains constant

    • Why do producers offer more for sale at higher prices according to the Law of Supply?

  • To reduce profits
  • To increase costs
  • To maximize profits (correct)
  • To maximize losses

    • What is the main reason for the upward slope of the supply curve?

  • Government regulations
  • Technological advancements
  • Costs and profit (correct)
  • Price changes in related products

    • How do businesses aim to operate when providing goods and services?

    <p>At a profit</p> Signup and view all the answers

    What are some determinants of supply according to the text?

    <p>Price of required inputs, technology, and prices of related products</p> Signup and view all the answers

    How do subsidies typically impact the supply of a good or service?

    <p>Increase supply</p> Signup and view all the answers

    What factors can cause a shift in the supply curve?

    <p>Subsidies and taxes, technology, number of sellers, expectations, and resource costs</p> Signup and view all the answers

    How do subsidies affect production?

    <p>Subsidies encourage production</p> Signup and view all the answers

    Why does the supply curve slope upward?

    <p>Because firms want to sell more at higher prices</p> Signup and view all the answers

    How do improvements in technology impact the supply curve?

    <p>They increase the ability of firms to supply</p> Signup and view all the answers

    What is one of the determinants of supply mentioned in the text?

    <p>Expectations about future prices and economic conditions</p> Signup and view all the answers

    How does an increase in the number of sellers affect the market supply?

    <p>It increases market supply</p> Signup and view all the answers

    What leads to a change in supply, resulting in a shift of the curve?

    <p>Changes in input prices</p> Signup and view all the answers

    What happens when there is a decrease in supply?

    <p>The supply curve shifts to the left</p> Signup and view all the answers

    Why does the supply curve slope upwards?

    <p>Due to the law of supply</p> Signup and view all the answers

    What is market supply?

    <p>The sum of all quantities supplied by individual firms in a market</p> Signup and view all the answers

    How do subsidies affect the supply curve?

    <p>Shift it to the right</p> Signup and view all the answers

    What causes an increase in supply?

    <p>Decrease in input prices</p> Signup and view all the answers

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