#1
Which of the following best defines the law of supply?
As the price of a good increases, the quantity supplied increases.
ExplanationDirect relationship between price and quantity supplied.
#2
What does a shift to the right in the supply curve indicate?
Increase in supply
ExplanationExpansion of available quantity in the market.
#3
Which of the following is an example of a market force?
Consumer income
ExplanationExternal factor affecting market dynamics.
#4
Which of the following is a shift factor of the demand curve?
Change in consumer income
ExplanationExternal factor influencing demand.
#5
What is the relationship between price and quantity supplied according to the law of supply?
Directly proportional
ExplanationBasic principle of the law of supply.
#6
Which of the following is NOT a determinant of supply?
Consumer preferences
ExplanationExternal factor not influencing supply.
#7
What is the relationship between price elasticity of supply and time?
Price elasticity of supply is high in the short run and low in the long run.
ExplanationTime-dependent responsiveness of supply.
#8
What is the price elasticity of supply formula?
Percentage change in quantity supplied / Percentage change in price
ExplanationCalculation for measuring supply responsiveness.
#9
What happens to the equilibrium price and quantity when demand increases and supply decreases?
Price increases, quantity decreases
ExplanationImpact of opposing market forces on price and quantity.
#10
Which of the following is a characteristic of a perfectly elastic supply curve?
It is horizontal.
ExplanationExtreme responsiveness with a flat slope.
#11
In economics, what is the market equilibrium?
The point where quantity supplied equals quantity demanded.
ExplanationBalanced state of market forces.
#12
What is the difference between a change in quantity supplied and a change in supply?
A change in quantity supplied is caused by a change in price, while a change in supply is caused by a non-price determinant.
ExplanationCause of changes in quantity supplied and supply.
#13
What is the relationship between the elasticity of supply and the slope of the supply curve?
As elasticity increases, the slope becomes flatter.
ExplanationCorrelation between elasticity and slope.
#14
Which of the following is a characteristic of a perfectly inelastic supply curve?
It is vertical.
ExplanationNo responsiveness with a steep slope.
#15
What is the main difference between a change in supply and a change in quantity supplied?
A change in supply is caused by a non-price determinant, while a change in quantity supplied is caused by a change in price.
ExplanationDistinguishing factors leading to changes in supply and quantity supplied.