Practice Factors Affecting Supply (4.3) - Microeconomics - IB 10 Individuals & Societies

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9 questions

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6 questions · about 4 min · pass mark 70%. Hints available.
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6 sample questions

Question 1.
What happens to supply if the price of a good rises?
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Think about the Law of Supply.
Question 2.
Name one factor that can decrease supply.
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Consider what affects production costs.
3Question 3.
What is the Law of Supply?
- Supply decreases as price increases
- Supply increases as price increases
- Supply remains constant regardless of price
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Look at the relationship between price and quantity.
4Question 4.
True or False: Higher production costs typically increase supply.
- True
- False
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Consider how costs affect willingness to produce.
Question 5.
A company produces toy cars. Due to a new tax policy, their production costs rose significantly. Analyze the likely effect on supply and provide supporting reasoning.
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Consider how production costs impact decisions to manufacture.
Question 6.
Discuss how an increase in the number of technology firms entering a market affects existing suppliers. Include potential outcomes.
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Think of competition dynamics.

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