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The Supply Curve quiz #2 Flashcards

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The Supply Curve quiz #2
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  • What does the supply curve show?
    The supply curve shows the relationship between the price of a good and the quantity supplied by sellers.
  • What does the supply curve represent?
    The supply curve represents how much of a good sellers are willing to supply at various prices.
  • What information does a supply schedule provide?
    A supply schedule provides information about the quantities of a good that will be supplied at different prices.
  • What is the law of supply?
    The law of supply states that as the price of a good increases, the quantity supplied increases, and as the price decreases, the quantity supplied decreases.
  • What is a supply curve?
    A supply curve is a graphical representation of the relationship between the price of a good and the quantity supplied.
  • What does a market supply schedule show?
    A market supply schedule shows the quantities of a good that all suppliers in the market are willing to sell at various prices.
  • According to the law of supply, how do price and quantity move?
    According to the law of supply, price and quantity supplied move in the same direction; as price increases, quantity supplied increases.
  • In a market economy, what is supply?
    In a market economy, supply is the amount of a good or service that sellers are willing and able to offer for sale at different prices.
  • What does a firm's supply schedule show?
    A firm's supply schedule shows the quantities of a good that the firm is willing to supply at different prices.
  • What does the law of supply suggest?
    The law of supply suggests that there is a direct relationship between price and quantity supplied; higher prices lead to higher quantities supplied.
  • What is a market supply schedule?
    A market supply schedule is a table that lists the quantities of a good all suppliers in the market are willing to sell at various prices.
  • What does the law of supply state?
    The law of supply states that as the price of a good rises, the quantity supplied rises, and as the price falls, the quantity supplied falls.
  • Which statement best explains the law of supply?
    The law of supply is best explained by the direct relationship between price and quantity supplied: as price increases, quantity supplied increases.
  • Which statement is consistent with the law of supply?
    A statement is consistent with the law of supply if it describes quantity supplied increasing as price increases.
  • How do lenders in the mortgage market supply funds?
    Lenders in the mortgage market supply funds by offering loans to borrowers at various interest rates, similar to how suppliers offer goods at different prices.
  • Why does the supply curve slope upward?
    The supply curve slopes upward because higher prices motivate suppliers to increase the quantity they are willing to sell.
  • How is the market supply curve derived from individual supply curves?
    The market supply curve is derived by summing the quantities supplied by all individual suppliers at each price.
  • What is the difference between supply and quantity supplied?
    Supply refers to the entire relationship between price and quantity supplied, while quantity supplied is the specific amount offered at a particular price.
  • What are the axes on a supply curve graph?
    On a supply curve graph, price is on the y-axis and quantity is on the x-axis.
  • What happens to quantity supplied when price decreases?
    When price decreases, the quantity supplied decreases according to the law of supply.
  • What does each point on a supply curve represent?
    Each point on a supply curve represents the quantity of a good that suppliers are willing to sell at a specific price.
  • How do suppliers respond to higher prices?
    Suppliers respond to higher prices by increasing the quantity of the good they are willing to supply.