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Questions and Answers
What does the supply schedule depict graphically?
What does the supply schedule depict graphically?
- The relationship between the price of a good and the quantity demanded by consumers
- The relationship between the price of a good and the cost of raw materials
- The relationship between the price of a good and the quantity supplied by producers (correct)
- The relationship between the price of a good and the average revenue of producers
How does a rise in the cost of raw materials affect supply?
How does a rise in the cost of raw materials affect supply?
- It increases supply, shifting the supply curve to the right
- It has no effect on supply
- It decreases supply, shifting the supply curve to the left (correct)
- It causes the supply curve to become vertical
In a competitive market, what determines supply?
In a competitive market, what determines supply?
- Average cost
- Fixed cost
- Marginal cost (correct)
- Total cost
What must happen for producers to supply a given quantity when the cost of production increases?
What must happen for producers to supply a given quantity when the cost of production increases?
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What does the supply and demand model postulate in a competitive market?
What does the supply and demand model postulate in a competitive market?
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