SUPPLY

Question 1

A change in QS happens because of a change in

Accepted Answer

price

Question 2

T / F Supply curves slope up and to the right.

Accepted Answer

True

Question 3

You figure elasticity of supply by

Accepted Answer

using the proportional test

Question 4

Supply is elastic when a small change in price has a large change in QS.

Accepted Answer

True

Question 5

T / F Supply and demand curves slope the same way.

Accepted Answer

False

Question 6

Suppliers need to know if their product is elastic or not

Accepted Answer

so they know how sensitive buyers are to a price change, so they know how much they can alter their prices, so they know what to set their price at

Question 7

Supply is inelastic when (after a price change)

Accepted Answer

QS < P

Question 8

Original Supply curves are labeled

Accepted Answer

with an S

Question 9

A shift in the supply curve to the right means

Accepted Answer

suppliers are supplying more at the same prices, there was an increase in supply

Question 10

A change in QS is illustrated in the graph by

Accepted Answer

movement on the existing curve

Question 11

Supply means

Accepted Answer

the amount suppliers are willing to sell

Question 12

If a supply curve shifts left (S and S1), it illustrates a

Accepted Answer

a decrease in supply

Question 13

T / F Suppliers want to generally supply more at lower prices.

Accepted Answer

False

Question 14

T / F Supply tends to be elastic when items are easy and relatively inexpensive to produce.

Accepted Answer

True

Question 15

A change in supply happens for all reasons listed EXCEPT:

Accepted Answer

a change in price

Question 16

Supply elasticity measures the response a change in ___ will have on ___ ___ .

Accepted Answer

Price, QS

Questions 16