AnswersRAIL NCAA OC Economics 2027The Law of Supply

The Law of Supply Answers

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The graph shows excess supply.Which needs to happen to the price indicated by p2 on the graph in order to achieve equilibrium?

Question illustration
I
It needs to be increased.
I
It needs to be decreased.
I
It needs to reach the price ceiling.
I
It needs to remain unchanged.
2
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What happens when the quantity of a good supplied at a given price is greater than the quantity demanded?

e
excess supply
s
stable prices
e
exact equilibrium
i
increased production
3

On a graph, an equilibrium point is where

a
a supply curve and a demand curve meet.
a
a supply curve is higher than a demand curve.
t
the supply and demand curves head up.
t
the supply and demand curves head down.
4

The graph shows excess demand.Which explains why the price indicated by p2 on the graph is lower than the equilibrium price?

Question illustration
A
As prices fall, quantity demanded goes up.
A
As prices fall, quantity demanded goes down.
A
As prices fall, quantity demanded stays the same.
A
As prices fall, quantity demanded disappears.
5

The graph shows excess demand.Which needs to happen in order to stop disequilibrium from occurring?

Question illustration
Q
Q needs to be coordinated with supply.
Q
Q needs to be coordinated with demand.
T
The price of goods needs to be increased.
T
The price of goods needs to be decreased.
6

The graph shows a point of equilibrium.How many goods must be supplied to achieve equilibrium?

Question illustration
1
15
2
20
2
25
3
30
7

Which explains the connection between the law of demand and excess demand?

T
The law states that decreases in price leads to greater quantity demanded and limited supply, which occurs during excess demand.
T
The law states that increases in price increases leads to greater quantity demanded and limited supply, which occurs during excess demand.
T
The law states that decreases in price leads to greater supply and equilibrium, which occurs during excess demand.
T
The law states that increases in price leads to greater supply and equilibrium, which occurs during excess demand.
8

The graph shows a point of equilibrium.What does "P" represent on the graph?

Question illustration
t
the point where equilibrium is achieved
t
the price at the equilibrium point
t
the average price of goods sold
t
the point where supply and demand drop
9

Disequilibrium occurs when

q
quantity supplied is equal to quantity demanded.
q
quantity supplied does not equal quantity demanded.
s
supply coordinates with price.
s
supply coordinates with quantity.
10

A builder must build fifty houses by the end of the year but he has run out of available land.Which best describes the builder's supply of houses?

A
elastic
B
competitive
C
inelastic
D
profitable
11

Which best describes what happens to the amount of a good or service that is supplied to consumers?

A
The amount of a good or service can change.
B
The amount of a good or service always remains the same.
C
The amount of a good cannot change.
D
The amount of a service cannot change.
12

A supply schedule shows how prices affect the

A
quality of a good.
B
overall economy of a country.
C
quantity of a good supplied by a producer.
D
unemployment rate.
13

When a company produces goods for sale, those goods must be

A
created in ways that meet consumer demand.
B
designed in ways that are highly creative.
C
priced lower than the goods sold by another company.
D
created in quantities that are relatively scarce.
14

The amount that a good is sold for is its

A
elasticity.
B
price.
C
profit.
D
supply.
15

Which factors must a producer consider when deciding what good to supply? Check all that apply.

A
the appeal of the good to family members
B
the elasticity of a good being supplied
C
competition within the market
D
the ability to produce the good efficiently
E
the ability to produce a good of low quality
16

When prices for homes rise, why might construction companies decide to build more homes?

A
to increase employment
B
to make a profit
C
to create a need for more resources
D
to boost name recognition
17

Read the scenario below and then answer the question. Sample scenario:Scientists have created a new grass seed that stops grass growth at a specific length, eliminating the need to mow the lawn. The price of this seed is high, but many consumers still want to use it. As a result, several different producers supply a large amount of this seed to consumers. In order to attract consumers to their product, some producers lower their prices and supply fewer bags of seeds. What is the best description of the grass seed that is described in this scenario?

A
a good with a low price
B
a good with a high price
C
a good with an inelastic supply
D
a good with an elastic supply
18

The law of supply demonstrates the behaviors of producers when they

A
change their company’s name.
B
decide to hire fewer workers.
C
supply goods to consumers.
D
launch a new marketing campaign.
19

In order to compete successfully, a producer must produce goods that are

A
more expensive than those of competitors.
B
of a lesser quality than those of competitors.
C
of a higher quality than those of competitors.
D
created without worrying about the costs of production.

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