Comprehension Questions - The Supply Curve

1. If the price of strawberries increases

a. People will sell more strawberries.
b. People will sell fewer strawberries.
c. People will buy more strawberries.
d. The number of sandwiches bought and sold will not change.

2. If the price of cars decreases

a. The quantity supplied will increase.
b. The quantity supplied will decrease.
c. The quantity supplied will not change.

3. Looking at the graph above, how many apples will people want to sell if the price is
$1.50? 50

4. Looking at the graph above, how many apples will people want to sell if the price is
$1.00? 25

5. Looking at the graph above, how many apples will people want to sell if the price is
$0.20? 0

6. True or False: The supply curve is upward-sloping because as the price increases, firms
can profit even when production costs are higher.
7. Graph the supply for gold by plotting the following points.

Price per ounce Quantity Supplied

$2000 400
$1000 200
$500 100

2000

1000

500

100 200 400