Which of the following is the best example of the law of supply?

A shop Increases the number of sandwiches when the price is increased

When the selling price of a good goes up, what is the relationship to the quantity supplied?

The profit made on each item goes down.

What do sellers do if they expect the price of goods they have for sale to increase dramatically in the near future?

store the goods until the price rises

What happens when wages are set above the equilibrium level by law?

Firns employ fewer workers than they would at the equilibrium wage.

Which of the following is an example of lower production costs brought about by the use of technology ?

the use of e-mail to replace slower surface mail

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Supply and Demand 1-10

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Questions 10

Answers

1
Which of the following goods would be likely to be bought in the same quantity even if it doubled in price?
Shoes
pencils
telephones
computers
2
Which of the following is a fixed cost for a store?
inventory
rent
advertising
short-term workers
3
Which of the following is an example of a good with an inelastic supply?
toothbrushes
apples
beanbags
hats
4
What factor has the greatest influence on elasticity and inelasticity of supply?
labor
time
profit
financing
5
Which of the following is the best example of the law of supply?
A producer increases the number of acres to supply a milling company.
A milling company builds a new factory to process flour to export
A catering company:buys a new dishwasher to make their work easier.
A shop Increases the number of sandwiches when the price is increased
6
When the selling price of a good goes up, what is the relationship to the quantity supplied?
The profit made on each item goes down.
The cost of production goes down
There is no relationship between the two.
It becomes practical to produce more goods
7
What do sellers do if they expect the price of goods they have for sale to increase dramatically in the near future?
store the goods indefinitely regardless of when the price rises
sell the goods now and try to invest the money instead of resupplying
store the goods until the price rises
sell the goods now but try to get the higher price for them
8
What happens when wages are set above the equilibrium level by law?
Firms hire more workers fewer hours than they would at the equilibrium wage
Firns employ fewer workers than they would at the equilibrium wage.
Firms tend to try to break the law and hire people at the equilibrium level
Firms employ more workers than they would at the equilibrium wage.
9
What is the effect of import restrictions on prices?
They cause prices to rise.
They often cause prices to rise steeply and then drop.
They usually do not have any lasting effect on price.
They cause prices to drop.
10
Which of the following is an example of lower production costs brought about by the use of technology ?
the use of e-mail to replace slower surface mail
The delivery costs of gasoline to the consumer by diesel trucks
making of breads and pastries in local shops rather than large bakeries
the importing of fresh vegetables rather than using canned vegetables

Supply and Demand 1-10 Flashcards | StudBud