Spot the supply lie

Exercise and reference answers

Questions

1. False statement

   Sellers offer more when price falls

   Statements

   1. Higher market price expands supply
   2. An input price rise decreases supply
   3. Sellers offer more when price falls

2. False statement

   Expansion means the curve moved bodily

   Statements

   1. Expansion means the curve moved bodily
   2. A rightward shift is an increase in supply
   3. A leftward shift is a decrease in supply

3. False statement

   The law of supply is an inverse relation

   Statements

   1. A supply schedule is a tabular presentation
   2. The law of supply is an inverse relation
   3. The law of supply holds other things constant

Instructions

One statement in each set is false. Tap it.

Explanation