Law of Supply Worksheet
A Grade 12 Economics worksheet focusing on the Law of Supply, its determinants, and graphical representation.
Includes
Topics
Law of Supply Worksheet
Name:
Date:
Score:
Read each question carefully and provide thoughtful answers based on your understanding of the Law of Supply in Economics.
1. What does the Law of Supply state?
As price increases, quantity demanded decreases.
As price increases, quantity supplied increases.
As income increases, demand increases.
Supply is always constant regardless of price.
2. Which of the following is NOT a determinant of supply?
Technology
Cost of production
Consumer 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 shift in the supply curve to the right indicates an in supply, while a shift to the left indicates a in supply.
5. An increase in the price of inputs will cause the supply curve to shift to the right.
True
False
6. Improved technology generally leads to a decrease in supply.
True
False
7. Explain the difference between a change in quantity supplied and a change in supply. Provide an example for each.
8. Describe how government subsidies can affect the supply of a product.
9. Draw a basic supply curve on the graph below. Label the axes appropriately and show an upward-sloping supply curve.