Law of Supply Worksheet
This worksheet explores the fundamental economic principle of the Law of Supply, including its definition, determinants, and graphical representation.
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Law of Supply Worksheet
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Read each question carefully and provide thoughtful responses. Show your work where applicable.
1. According to the Law of Supply, if the price of a good increases, what will happen to the quantity supplied?
Quantity supplied will decrease.
Quantity supplied will increase.
Quantity supplied will remain the same.
The supply curve will shift to the left.
2. Which of the following is NOT a determinant of supply?
Technology
Input prices
Consumer tastes and preferences
Number of sellers
3. The Law of Supply states that, ceteris paribus, as the price of a good or service , the quantity supplied of that good or service also .
4. A change in will cause a movement along the supply curve, while a change in a determinant of supply will cause a of the entire supply curve.
5. Explain the concept of 'ceteris paribus' as it applies to the Law of Supply.
6. An increase in the cost of production will shift the supply curve to the right.
True
False
7. Improved technology generally leads to an increase in supply.
True
False
8. Describe how a change in the price of a related good (e.g., a substitute in production) can affect the supply of a particular good.