5 Questions
Define supply and explain the economic variables extracted from the definition.
Supply is the quantity of goods or services that producers are willing and able to sell at a given price over a specific period of time. The economic variables extracted from the definition are the price of the goods and the quantity of the goods that suppliers are willing and able to sell.
Explain the theory of supply and what it examines.
The theory of supply examines the behavior of suppliers, producers, or firms in a market.
Differentiate between demand and supply.
Demand refers to the quantity of a good or service that consumers are willing and able to buy at a given price, while supply refers to the quantity of a good or service that producers are willing and able to sell at a given price.
Explain why the supply curve slopes upward from right to left.
The supply curve slopes upward from right to left because as the price of a good increases, suppliers are willing to produce and sell more of that good.
Define the Law of supply and explain any exceptional cases of the law.
The Law of supply states that as the price of a good increases, the quantity supplied increases, and vice versa. An exceptional case of this law could occur when the cost of production decreases, leading to an increase in supply even if the price remains constant.
Test your knowledge of the theory of supply with this quiz. Covering topics such as defining supply, types of supply, supply schedule, and the law of supply, this quiz will help you differentiate between demand and supply while exploring exceptional cases and changes in quantity supplied and supply.
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