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Law of Supply Worksheet

A Grade 12 Economics worksheet focusing on the Law of Supply, its determinants, and graphical representation.

Grade 12 Social studies EconomicsLaw of Supply
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Multiple ChoiceFill in the BlanksTrue / FalseShort AnswerCustom

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ELA-LITERACY.RH.11-12.2ELA-LITERACY.RH.11-12.4
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Law of Supply Worksheet

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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?

a

As price increases, quantity demanded decreases.

b

As price increases, quantity supplied increases.

c

As income increases, demand increases.

d

Supply is always constant regardless of price.

2. Which of the following is NOT a determinant of supply?

a

Technology

b

Cost of production

c

Consumer preferences

d

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.

T

True

F

False

6. Improved technology generally leads to a decrease in supply.

T

True

F

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.

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