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AP Microeconomics Practice Quiz: Supply

Written by AP Content Team, Verified for 2026 AP Exams, Last updated: May 2026

Test your understanding with short quizzes. This quiz has 14 questions to check your progress.

Question 1 of 14

The law of supply describes a relationship between which two variables?

All Questions (14)

The law of supply describes a relationship between which two variables?

A) Price and quantity demanded

B) Price and quantity supplied

C) Technology and quantity supplied

D) Incentives and price

Correct Answer: B

Based on the provided content, the law of supply defines the relationship between the price of a good and the quantity of that good that producers are willing and able to sell.

Which of the following events would cause a change in the quantity supplied of cotton and be represented as a movement along the supply curve for cotton?

A) A change in the price of cotton

B) An improvement in cotton harvesting technology

C) A new government subsidy for cotton farmers

D) A decrease in the number of cotton farmers

Correct Answer: A

The content states that 'A change in own-price causes a change in quantity supplied... and a movement along a supply curve.' The other options are determinants that would shift the entire supply curve.

How is the market supply curve for a product derived?

A) By vertically summing the supply curves of all individual producers.

B) By finding the average quantity supplied by all producers at each price.

C) By horizontally summing the supply curves of all individual producers.

D) By selecting the supply curve of the most efficient individual producer.

Correct Answer: C

The content explicitly states, 'The market supply curve (schedule) is derived from the summation of individual supply curves (schedules).' In economics, this summation is done horizontally by adding the quantities supplied by all firms at each price level.

A technological breakthrough that makes it cheaper to produce computer chips will have what effect on the market for computer chips?

A) A movement up along the supply curve, representing an increase in quantity supplied.

B) A leftward shift of the supply curve, representing a decrease in supply.

C) A movement down along the supply curve, representing a decrease in quantity supplied.

D) A rightward shift of the supply curve, representing an increase in supply.

Correct Answer: D

The content explains that producers respond to changes in technology. An improvement in technology acts as a positive incentive, lowering production costs and causing the supply curve to shift to the right, indicating an increase in supply at every price level.

According to the law of supply, if the market price for oranges increases, what will happen to the quantity of oranges supplied, ceteris paribus?

A) The quantity supplied will decrease.

B) The quantity supplied will increase.

C) The quantity supplied will remain unchanged.

D) The supply curve will shift to the left.

Correct Answer: B

The law of supply indicates a direct relationship between price and quantity supplied. Therefore, an increase in price leads to an increase in the quantity supplied.

Which of the following best distinguishes a 'change in supply' from a 'change in quantity supplied'?

A) A change in supply is a movement along the curve caused by price, while a change in quantity supplied is a shift of the curve caused by a determinant.

B) A change in supply is a shift of the entire curve caused by a determinant, while a change in quantity supplied is a movement along the curve caused by price.

C) Both terms describe a rightward shift of the supply curve, but 'change in supply' is a larger shift.

D) Both terms describe a movement along the supply curve, but 'change in quantity supplied' is a larger movement.

Correct Answer: B

The provided content distinguishes between these two concepts. A 'change in quantity supplied' is a movement along the curve due to a change in the good's own price. A 'change in supply' is a shift of the entire curve caused by a change in a determinant of supply, such as technology or incentives.

The market supply curve is upward-sloping, which graphically represents:

A) The inverse relationship between price and quantity supplied.

B) The direct relationship between technology and supply.

C) The direct relationship between price and quantity supplied.

D) The inverse relationship between incentives and supply.

Correct Answer: C

The content states that the market supply curve is upward-sloping. This positive slope illustrates the law of supply, which is the direct (or positive) relationship between the price of a good and the quantity producers are willing to supply.

Suppose the government removes a tax on the production of solar panels. How would this change in producer incentives be reflected in the market for solar panels?

A) The supply curve would shift to the left.

B) The supply curve would shift to the right.

C) There would be a movement upward along the supply curve.

D) There would be a movement downward along the supply curve.

Correct Answer: B

Removing a tax lowers the cost of production, acting as a positive incentive for producers. The content explains that producers respond to changes in incentives, and this response would be a change in overall supply, represented by a rightward shift of the supply curve.

A change in a determinant of supply will:

A) Cause the supply curve to shift.

B) Cause a movement along the supply curve.

C) Cause the supply curve to become vertical.

D) Have no effect on the supply curve.

Correct Answer: A

The content explicitly states, 'Changes in the determinants of supply can cause the supply curve to shift.' These determinants are factors other than the good's own price.

If Firm A is willing to supply 100 units at $5 and Firm B is willing to supply 150 units at $5, and they are the only two firms in the market, what is the market quantity supplied at $5?

A) 100 units

B) 125 units

C) 150 units

D) 250 units

Correct Answer: D

The market supply is the summation of individual supplies. To find the market quantity supplied at a given price, you add the quantities supplied by each individual firm at that price. Therefore, 100 units + 150 units = 250 units.

A producer's willingness to sell more of a good at a higher price than at a lower price is a direct result of:

A) The process of market summation.

B) A change in production technology.

C) The law of supply.

D) A shift in the supply curve.

Correct Answer: C

The law of supply defines the positive relationship between price and quantity supplied. The incentive of a higher price encourages producers to offer more of their product for sale.

On a supply schedule, the price of a good falls from $10 to $8. This will cause:

A) A decrease in supply.

B) An increase in supply.

C) A decrease in quantity supplied.

D) An increase in quantity supplied.

Correct Answer: C

A change in the good's own price causes a change in quantity supplied, not a change in supply. According to the law of supply, a decrease in price will lead to a decrease in the quantity supplied.

A graph shows the supply curve for gasoline shifting to the left. Which of the following events could have caused this shift?

A) An increase in the price of gasoline.

B) A decrease in the price of gasoline.

C) A new technology that makes oil refining more efficient.

D) A new regulation that makes oil refining more costly.

Correct Answer: D

A leftward shift represents a decrease in supply. This is caused by a change in a determinant of supply. A new, costly regulation acts as a negative incentive, increasing production costs and causing producers to supply less at every price level. A change in price would cause a movement along the curve, and new technology would shift the curve right.

The relationship between price and quantity supplied is in the 'same direction'. This means that:

A) As price increases, quantity supplied decreases.

B) As price increases, quantity supplied increases.

C) As technology improves, price increases.

D) As incentives change, the price stays the same.

Correct Answer: B

The content states that a change in price causes a change in quantity supplied 'in the same direction.' This describes a positive or direct relationship: when one variable (price) goes up, the other variable (quantity supplied) also goes up, and vice versa.