Summary Questions (contd.)

 

 

 

2.   This question relates to the supply of tea – match each situation with the appropriate statement relating to supply (contd._

 

 

e) The price of tea falls

 

1: There is a movement along the supply curve, and the quantity supplied will increase

2: There is a movement along the supply curve, and the quantity demanded will decrease

3: The supply curve shifts to the right and more is supplied at each price

4: The supply curve shifts to the left and less is supplied at each price


 

 

3. If there is an increase in price, producers will (INCREASE or DECREASE?) the quantity supplied.

 

If there is a decrease in price, producers will (INCREASE or DECREASE?) the quantity supplied.

 

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