Supply Curve Movements vs. Shifts Quiz

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Questions and Answers

What does a supply curve represent in economics?

The relationship between price and quantity supplied by an individual seller
The relationship between quantity supplied and price in the market (correct)
The relationship between quantity supplied and demand for a specific product
The relationship between total costs and total revenue for a business

What is the main factor that influences an individual seller's supply curve?

Market demand for the product
Income levels of the consumers
Production costs of the seller (correct)
Government regulations on pricing

In economics, what does a shift to the right in the market supply curve indicate?

Decrease in the price of the product
Increase in the number of sellers in the market
Increase in the quantity supplied at all price levels (correct)
Decrease in the quantity supplied at all price levels

What is the difference between an individual supply curve and a market supply curve?

An individual supply curve represents quantity supplied by one seller, while a market supply curve shows total quantity supplied by all sellers. (B) Signup and view all the answers

What term is used in economics to define goods that can be easily replaced by one another?

Substitutes (C) Signup and view all the answers

How do expectations affect demand curves in economics?

Expectations lead to shifts in demand curves due to future predictions (D) Signup and view all the answers

'Excess demand' in economics refers to:

When quantity demanded exceeds quantity supplied at a given price (C) Signup and view all the answers

'Perfect substitutes' in economics are characterized by:

'Perfect substitutes' are goods that can be substituted with each other without any change in utility (A) Signup and view all the answers

'Equilibrium' in economics occurs when:

'Equilibrium' happens when quantity demanded equals quantity supplied at a specific price level (A) Signup and view all the answers

'Law of supply' states that:

'Law of supply' argues that producers will supply more at higher prices and less at lower prices (A) Signup and view all the answers

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Study Notes

Distinguishing between movements along supply curves and shifts in supply curves is important: changes in price lead to movements along the curve, while changes in costs, input prices, technology, or related goods lead to shifts in the curve.
Market supply is the total amount supplied by all producers of a single product in a period.
Total supply in the marketplace is the sum of all amounts supplied by all firms selling in the market.
Market equilibrium occurs when quantity supplied equals quantity demanded, influencing the demand for substitutes and complements.
Market demand is the sum of quantities demanded per period by all households in the market for a specific good or service.