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Which of the following statements is true about the supply?

a. Supply refers to the amount of inventory that sellers have in their warehouses.

b. There is an inverse relationship between price and quantity supplied.

c. As price increases, producers are willing and able to put more of the good on the market for sale.

d. As price decreases, producers are willing and able to put more of the good on the market for sale.

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Mahe Alam
Mahe AlamLv10
14 Jan 2021
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Related questions

A demand curve is defined as the relationship between: 

a. the income of the consumers and the quantity of a good that the consumers are willing to buy.

b. the price of a good and the quantity of that good sellers are willing to sell.

c. the price of a good and the quantity of that good consumers are willing to buy.

d. the income of the consumers and the quantity of a good that the producers are willing to sell.

 

Which of the following defines a demand curve?
a. The law of demand represents a state in which the conflicting forces of supply and demand are in balance.
b. The law of demand represents those resources that go into the production of any given product.
c. A principle that states there is a direct relationship between the price of a good and the quantity of it producers are willing to supply.
d. A principle that states there is an inverse relationship between the price of a good and the quantity of it buyers are willing to purchase.

1)The law of demand states that as the price of a good rise, _____.

A. buyers purchase more of the good because the price of a substitute has risen.

B. buyers purchase less of the good because their real income decreases with an increase in price.

C. buyers purchase more of the good because they expect prices to be even higher in the future

D. buyers purchase less of the good because they expect prices to fall in the future.

 

2) A movement along a demand curve can be attributed to a change in:

A. the quantity demanded of a good.

B. the demand for a good.

C. the substitution effect of consuming a good.

D. the opportunity cost of producing a good.

 

3) If we say that demand for a good has increased, we mean that there has been:

A. a leftward shift of the demand curve.

B. a rightward shift of the demand curve.

C. a leftward movement along the demand curve.

D. a rightward movement along the demand curve.

 

4) Which of the following will cause the demand curve for a normal good to shift to the right?

A. An increase in the price of a complementary good.

B. A decrease in income.

C. A decrease in the price of the good.

D. An increase in the price of a substitute good.

 

5)Which of the following best defines supply?

A. The amount of a good that is produced at the least possible cost, other things constant

B. The amount of a good that producers are willing and able to sell at each possible price, other things constant.

C. The amount of a good that consumers want to buy at different income levels

D. The amount of a good that producers want to sell at a fixed price

 

6)The market supply curve of a particular product indicates the total quantities:

A. that are actually sold during a given time period.

B. that sellers are willing to offer for sale at a fixed price.

C. that buyers are willing to purchase at alternative prices.

D. that sellers are willing and able to offer at alternative prices.

 

7)When quantity demanded of a good exceeds the quantity supplied at the prevailing market price, _____.

A. the demand curve shifts rightward until the surplus is eliminated

B. the market is in equilibrium.

C. the price of the good will tend to increase.

D. the price of the good will decrease

 

8)A shortage of textbooks is most likely to cause:

A. an increase in the price of textbooks.

B. a decrease in the supply of textbooks.

C. a decrease in the price of paper.

D. an increase in the cost of printing.

 

9)The most important characteristic of the equilibrium price is that it:

A. maximizes the quantity demanded.

B. clears the market, leaving neither a surplus nor a shortage.

C. minimizes the quantity demanded.

D. guarantees that producers earn the profit.

 

10)If both demand and supply increases in a market that is initially in equilibrium, the price will:

A. increase only if demand increases more than supply.

B. increase only if supply increases more than demand.

C. remain unchanged while quantity will increase.

D. remain unchanged while quantity will decrease.

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