1. Supply Review

2. What To Know… What is supply? Law of supply
How the supply curve slopes
The six factors that affect supply: input costs, labor productivity, technology, government action, producer expectations, new businesses – be able to identify examples
Inelastic & elastic supply – be able to identify examples
Yes, you will have to read & interpret a supply curve (graph)
STUDY and you will do well!

3. 5.1 Question 1
The desire and ability to produce and sell a product is a. demand b. production c. profit d. supply

4. 5.1 Question 1
The desire and ability to produce and sell a product is a. demand b. production c. profit d. supply

5. 5.1 Question 2
The law of supply states that a. when prices go up, quantity supplied goes down; when prices go down, quantity supplied goes up b. when prices go down, quantity supplied goes down; when prices go up, quantity supplied goes up c. when prices go up, supply goes down; when prices go down, supply goes up d. when prices go down, supply goes down; when prices go up, supply goes up

6. 5.1 Question 2
The law of supply states that a. when prices go up, quantity supplied goes down; when prices go down, quantity supplied goes up b. when prices go down, quantity supplied goes down; when prices go up, quantity supplied goes up c. when prices go up, supply goes down; when prices go down, supply goes up d. when prices go down, supply goes down; when prices go up, supply goes up

7. 5.1 Question 3
A supply schedule is a a. table showing how much of a product someone is willing and able to buy b. graph showing how much of a product someone is willing and able to buy c. table showing how much of a product someone is willing and able to sell d. graph showing how much of a product someone is willing and able to sell

8. 5.1 Question 3
A supply schedule is a a. table showing how much of a product someone is willing and able to buy b. graph showing how much of a product someone is willing and able to buy c. table showing how much of a product someone is willing and able to sell d. graph showing how much of a product someone is willing and able to sell

9. 5.1 Question 4
Supply curves are created using the assumption that all economic factors remain constant except a. demand b. elasticity c. price d. production

10. 5.1 Question 4
Supply curves are created using the assumption that all economic factors remain constant except a. demand b. elasticity c. price d. production

11. 5.1 Question 5
What motivates producers to increase supply? a. efficiency b. demand c. profit d. thrift

12. 5.1 Question 5
What motivates producers to increase supply? a. efficiency b. demand c. profit d. thrift

13. 5.3 Question 1
What do the different points along a supply curve show? a. changes in costs b. changes in productivity c. changes in quantity supplied d. changes in supply

14. 5.3 Question 1
What do the different points along a supply curve show? a. changes in costs b. changes in productivity c. changes in quantity supplied d. changes in supply

15. 5.3 Question 2
What is an excise tax? a. a tax on the removal of toxic material b. a tax on goods that are exported to another country c. a tax on the production or sale of specific goods or services d. a tax on the purchase of goods or services from overseas

16. 5.3 Question 2
What is an excise tax? a. a tax on the removal of toxic material b. a tax on goods that are exported to another country c. a tax on the production or sale of specific goods or services d. a tax on the purchase of goods or services from overseas

17. 5.3 Question 3
What is it called when government controls business behavior through rules or laws? a. duty b. inspection c. regulation d. subsidy

18. 5.3 Question 3
What is it called when government controls business behavior through rules or laws? a. duty b. inspection c. regulation d. subsidy

19. 5.3 Question 4
What is the most likely outcome when the number of producers of a particular product rises? a. a decrease in competition b. a rise in price c. an increase in supply d. a decrease in supply

20. 5.3 Question 4
What is the most likely outcome when the number of producers of a particular product rises? a. a decrease in competition b. a rise in price c. an increase in supply d. a decrease in supply

21. 5.3 Question 5
Which of the following are examples of government actions? a. excise tax, input costs, regulation b. productivity, regulation, subsidy c. excise tax, input costs, productivity d. excise tax, regulation, subsidy

22. 5.3 Question 5
Which of the following are examples of government actions? a. excise tax, input costs, regulation b. productivity, regulation, subsidy c. excise tax, input costs, productivity d. excise tax, regulation, subsidy

23. 5.4 Question 1
Elasticity of supply measures how responsive a. consumers are to price change b. government is to price change c. producers are to price change d. workers are to price change

24. 5.4 Question 1
Elasticity of supply measures how responsive a. consumers are to price change b. government is to price change c. producers are to price change d. workers are to price change

25. 5.4 Question 2
Which of the following examples demonstrates elastic supply? a. The price of submarine sandwiches rises 50 percent; the quantity supplied by the deli rises 30 percent. b. Gasoline prices rise from $1.50 to $3.00 a gallon, and refineries increase production 10 percent. c. Nurseries cut the price of rose bushes in half, but because the bushes are two years old, supply remains fixed. d. A CD fails to be a hit, stores discount it by 30 percent, and the recording company lowers production by 50 percent.

26. 5.4 Question 2
Which of the following examples demonstrates elastic supply? a. The price of submarine sandwiches rises 50 percent; the quantity supplied by the deli rises 30 percent. b. Gasoline prices rise from $1.50 to $3.00 a gallon, and refineries increase production 10 percent. c. Nurseries cut the price of rose bushes in half, but because the bushes are two years old, supply remains fixed. d. A CD fails to be a hit, stores discount it by 30 percent, and the recording company lowers production by 50 percent.

27. 5.4 Question 3
What is the most common reason for supply to be inelastic? a. the difficulty of changing the amount produced b. the lack of competition among producers c. the amount of government regulation d. the lack of demand among consumers

28. 5.4 Question 3
What is the most common reason for supply to be inelastic? a. the difficulty of changing the amount produced b. the lack of competition among producers c. the amount of government regulation d. the lack of demand among consumers

29. 5.4 Question 4
Which of the following is most likely to have elasticity of supply for their product? a. apple grower b. car manufacturer c. electronics manufacturer d. wedding-cake baker

30. 5.4 Question 4
Which of the following is most likely to have elasticity of supply for their product? a. apple grower b. car manufacturer c. electronics manufacturer d. wedding-cake baker

31. 5.4 Question 5
What do both elasticity of demand and elasticity of supply measure? a. responsiveness to price b. responsiveness to quantity c. desires of consumers d. desires of producers

32. 5.4 Question 5
What do both elasticity of demand and elasticity of supply measure? a. responsiveness to price b. responsiveness to quantity c. desires of consumers d. desires of producers