The Law of Supply – Flashcards

What happens when the price of a good increases?

The study of the interaction between individuals and businesses is known as

______________ is a measure of behaviors by producers and consumers in response to changes in price

The law of supply states that as the price of a good rises, the quantity supplied of that good

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

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

All things being equal, when producers sell goods for a lower price, they make

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?

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