Which of the following states the definition of supply?
a. More of a good is supplied at a lower price.
b. There is a positive relationship between the price of a good and the quantity that buyers purchase.
c. There is a positive relationship between the price of a good and the quantity offered for sale by suppliers.
d. There is a negative relationship between the price of a good and the quantity offered for sale by suppliers.
QUESTION 2According to the law of supply:
a. more of a good is desired by consumers as the price falls.
b. less of a good is desired by consumers as the price rises.
c. more of a good will be offered by suppliers as the price rises.
d. less of a good will be offered by suppliers as the price rises.
QUESTION 3According to the law of supply:
a. producers are willing to supply larger amounts of a good as its price increases.
b. a direct relationship exists between the price of a good and the amount buyers choose to buy.
c. an inverse relationship exists between the price of a good and the amount buyers wish to buy.
d. an inverse relationship exists between the price of a good and the amount producers supply.
QUESTION 4There is news that the price of Tucker's Root Beer will increase significantly next week. If the demand for Tucker's Root Beer reacts only to this factor and shifts to the right, the position of this demand curve has reacted to a change in:
a. tastes.
b. income levels.
c. the price of other goods.
d. the number of buyers.
e. expectations.
QUESTION 5Complementary goods are goods:
a. that are consumed jointly.
b. that are consumed one in place of the other.
c. for which demand increases when the price of its complementary goods increases.
d. for which demand decreases when the price of its complementary goods decreases.
e. that are inversely related.
QUESTION 6Two goods, X and Y, are complementary goods if the demand for X:
a. increases when the price of Y increases.
b. increases when income increases.
c. decreases when the price of Y increases.
d. increases as the price of its substitute good increases.
e. decreases as the price of its substitute good decreases.
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