Supply and its Determinants 1 - A Level Economics MCQ Quiz

Question 1/6

All other things being equal, supply curves for most goods slope upwards from left to right because

higher prices provide firms with a greater incentive to increase output. lower prices lead to higher demand. higher prices reduce the number of firms in the industry. lower prices lead to higher output. higher prices lead to lower costs of production.

Question 2/6

The diagram below shows the supply curve for a product.

Supply and demand diagram - Quantity on the horizontal axis (max 100), Price on the vertical axis (max 100). Lines shown: supply S (from 0,55 to 100,55).

The supply curve shown would be most likely to apply to which one of the following?

A rare vintage stamp. Tickets to a one-off sold-out concert. Copies of an e-book sold through an online store. Beachfront property in a small coastal town. An original painting by a famous artist.

Question 3/6

A port authority builds a new deep-water terminal, significantly increasing the capacity to handle container ships. All other things being equal, this is most likely to cause:

The supply curve for shipping services to shift to the left. A movement along the supply curve for shipping services. The supply curve for shipping services to shift to the right. No change in either curve, since demand is unaffected. The demand curve for shipping services to shift to the right.

Question 4/6

When the market price of wheat rises, individual farmers respond by planting more wheat the following season. This behaviour illustrates why

the supply curve for wheat is perfectly inelastic. wheat and other grains are substitutes in production. wheat has a negative income elasticity of demand. the demand curve for wheat slopes downward. the supply curve for wheat slopes upward.

Question 5/6

The supply curve shown in the diagram below would be most likely to apply to which one of the following?

Supply and demand diagram - Quantity on the horizontal axis (max 100), Price on the vertical axis (max 100). Lines shown: supply S (from 55,0 to 55,100).

Wheat grown on newly-cleared farmland. 3D-printed spare parts. Mass-produced plastic toys. Digital music downloads. An original painting by a famous, deceased artist.

Question 6/6

The world price of diesel fuel falls sharply, significantly lowering haulage firms' costs of transporting goods. All other things being equal, this is most likely to cause:

The supply curve for haulage services to shift to the right. A movement along the supply curve for haulage services. The demand curve for haulage services to shift to the right. No change in either curve. The supply curve for haulage services to shift to the left.