Problem 1
Explain the differences between the terms in each of these pairs: a. supply law of supply b. supply schedule supply curve c. market supply schedule market supply curve
Problem 1
Use each of the following three terms in a sentence that gives an example of the term as it relates to supply: a. elastic b. inelastic c. elasticity of supply
Problem 2
How is elasticity of supply similar to elasticity of demand? How is it different?
Problem 2
Why does a supply curve slope upward?
Problem 2
What else besides raw materials would be included in input costs?
Problem 3
Is the supply of genuine antique furniture elastic or inelastic? Why?
Problem 3
What do the points on a market supply curve represent?
Problem 3
Why might an increase in oil prices lead to a decrease in the supply of fruits and vegetables in your local supermarket?
Problem 4
If the price of a video game increased, what would the law of supply predict about the quantity supplied of the game?
Problem 4
What is the difference between industries that have elastic supply and those that have inelastic supply?
