6 Questions
What does the theory of supply primarily focus on?
Factors influencing the quantity of goods supplied
What is the relationship between price and quantity supplied in the law of supply?
They have a positive relationship
How does an increase in the price of a good typically affect its supply?
It often leads to an increase in supply
An increase in production costs will typically lead to a decrease in the supply of goods.
True
According to the theory of supply, as the price of a good increases, the quantity supplied also increases.
True
The theory of supply suggests that producers will supply more of a good when the price is low, and less when the price is high.
False
Test your knowledge of the theory of supply with this quiz! Explore the primary focus of the theory, the impact of price changes on supply, and the relationship between price and quantity supplied as per the law of supply. Ideal for students and anyone looking to brush up on economic concepts.
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