GCSE Economics Revision: Law of supply (With Mock Questions!)
Hello, Economics superstars! 🌟
Are you ready to crush your revision on the Law of Supply for your GCSE Economics exam? Let’s make it as easy and enjoyable as possible. We’ll go over the essentials and then test your knowledge with some practice questions. Ready? Let’s dive in! 💪
What Is the Law of Supply? 📈
The Law of Supply states that as the price of a good or service increases, producers are willing to supply more of it. In simpler terms, businesses like to make more money by producing more of something when they can sell it at a higher price. On the flip side, if prices fall, producers will want to supply less. Sounds logical, right? This relationship between price and supply is the backbone of supply-side economics.
Key Learning Points 🧠
Here are the key things you need to understand:
👉 The Law of Supply — As prices go up, supply goes up. As prices go down, supply goes down.
👉 Supply Curve — It slopes upward from left to right, showing the direct relationship between price and quantity supplied.
👉 Factors Affecting Supply — Production costs, technological advancements, taxes, subsidies, and expectations about future prices all affect how much producers supply.
👉 Market Equilibrium — Where the quantity supplied equals the quantity demanded at a particular price.
What Do You Need to Demonstrate? 📚
To nail your exam, you need to show that you understand how price and supply interact. You should be able to:
1️⃣ Explain the Law of Supply and describe the supply curve.
2️⃣ Identify factors that cause the supply curve to shift, like changes in production costs or technology.
3️⃣ Apply supply theory to real-world examples and understand how supply works in different market conditions.
4️⃣ Use diagrams to illustrate supply curves and shifts in the supply curve.
Key Things to Remember Before the Exam ⏰
✅ Revise key terms like supply, quantity supplied, shift in supply, and supply curve.
✅ Practice drawing supply curves. Know what a shift looks like when supply increases or decreases.
✅ Understand how factors like technology, taxes, and subsidies affect supply.
✅ Check past papers to see how supply questions are framed and get used to answering them under timed conditions.
✅ Stay calm and confident. You’ve got this! Remember, the more you practice, the easier it gets.
Mock Multiple-Choice Questions 📝
Let’s put your knowledge to the test! Try these questions and see how well you’re grasping the concept.
Q1 - According to the law of supply, if the price of a product increases, what will producers most likely do?
a) Decrease production
b) Increase production
c) Keep production the same
d) Stop production
Q2 - What shape does a typical supply curve take?
a) A downward slope from left to right
b) A straight vertical line
c) An upward slope from left to right
d) A straight horizontal line
Q3 - Which of the following factors is most likely to shift the supply curve to the right?
a) An increase in production costs
b) A new tax on producers
c) Technological improvements
d) A decrease in consumer demand
Q4 - If a government provides subsidies to a particular industry, how is the supply curve likely to react?
a) Shift to the left
b) Shift to the right
c) Become horizontal
d) Become vertical
Q5 - Which of the following would NOT cause a shift in the supply curve?
a) A change in the price of inputs (raw materials)
b) The introduction of a new production technology
c) A change in the number of consumers
d) Government-imposed regulations
To check your answers and see more questions check out our GCSE Economics Multiple-Choice booklet, with 250 sample questions and answers for you to revise
Good luck with your revision, and remember, hard work always pays off! You've got this. 💪📚 Keep practicing, stay focused, and you'll ace that exam!