Factors Affecting Changes in Supply Curves

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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?

At a profit Signup and view all the answers

What are some determinants of supply according to the text?

Price of required inputs, technology, and prices of related products Signup and view all the answers

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

Increase supply Signup and view all the answers

What factors can cause a shift in the supply curve?

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

How do subsidies affect production?

Subsidies encourage production Signup and view all the answers

Why does the supply curve slope upward?

Because firms want to sell more at higher prices Signup and view all the answers

How do improvements in technology impact the supply curve?

They increase the ability of firms to supply Signup and view all the answers

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

Expectations about future prices and economic conditions Signup and view all the answers

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

It increases market supply Signup and view all the answers

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

Changes in input prices Signup and view all the answers

What happens when there is a decrease in supply?

The supply curve shifts to the left Signup and view all the answers

Why does the supply curve slope upwards?

Due to the law of supply Signup and view all the answers

What is market supply?

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

How do subsidies affect the supply curve?

Shift it to the right Signup and view all the answers

What causes an increase in supply?

Decrease in input prices Signup and view all the answers