Practice Factors Affecting Supply (2.4.4) - Theory of Demand and Supply
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Factors Affecting Supply

Practice - Factors Affecting Supply

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Practice Questions

Test your understanding with targeted questions

Question 1 Easy

What is one factor that affects the supply of a commodity?

💡 Hint: Think about how changes in price impact decisions by producers.

Question 2 Easy

Define the term 'supply.'

💡 Hint: Consider the relationship between producers and prices.

4 more questions available

Interactive Quizzes

Quick quizzes to reinforce your learning

Question 1

What happens to supply when the price of a commodity increases?

Supply decreases
Supply remains constant
Supply increases

💡 Hint: Remember the direct relationship between price and quantity supplied.

Question 2

True or False: Government subsidies always decrease the supply of goods.

True
False

💡 Hint: Think about examples of how subsidies impact producers.

1 more question available

Challenge Problems

Push your limits with advanced challenges

Challenge 1 Hard

Given a scenario where a new tax is introduced on sugar production, analyze its effect on the supply of sugar. What should the producers expect?

💡 Hint: Consider the relationship between costs and supply decisions.

Challenge 2 Hard

A new technology dramatically decreases the cost of producing electric cars. Predict how this will likely affect the market supply. Discuss any potential impacts on consumer prices.

💡 Hint: Think about how technology impacts supply and consequently prices.

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