Economics EQT Study Guide 2007-08 Part 3
| A | B |
|---|---|
| When producers offer fewer products for sale at each and every price, what happens to the supply curve? | supply curve shift to left |
| In what direction does a supply curve slope? | slope up from left to right |
| What can cause a movement in the supply curve? | change in quantity supply |
When producers offer fewer products for sale at each and every Prive?
Supply and Demand Test- Pondy
| A | B |
|---|---|
| When producers offer fewer products for sale at each and every price | the supply curve has shifted to the left |
| In a market economy, a high price is a signal for | producers to supply more and consumers to buy less. |
When producers make more as price increases and less as price falls?
economics ch 5
| Question | Answer |
|---|---|
| producers offer more of a good when its price increases and less when its price falls | law of supply |
| the amount that a supplier is willing and able to supply at a specific price | quantity supplied |
| a chart that lists how much of a good A supplier will offer at various prices | supply schedule |
When the price of a product goes down what happens to producers?
When the price of a product goes down, what happens ? Some producers produce less, and others drop out of the market.
What effect does a rise in the cost of machinery or raw materials have on the cost of a good?
What effect does a rise in the cost of machinery or raw materials have on the cost of a good? The good becomes cheaper to produce.
Why does supply increase when price increases?
As the price of a good or service increases, the quantity that suppliers are willing to produce increases and this relationship is captured as a movement along the supply curve to a higher price and quantity combination. The Law of Supply: Supply has a positive correlation with price.
Why does price rise when supply decreases?
If there is a decrease in supply of goods and services while demand remains the same, prices tend to rise to a higher equilibrium price and a lower quantity of goods and services. However, when demand increases and supply remains the same, the higher demand leads to a higher equilibrium price and vice versa.
