Deck 4: 3: Sec 43 Mc Supply

Question 1

Holding the nonprice determinants of supply constant,a change in price would

A)result in either a decrease in supply or an increase in supply.
B)result in a movement along a stationary supply curve.
C)result in a shift of demand.
D)have no effect on the quantity supplied.

Answer 1

A

Question 2

The quantity supplied of a good is the amount that

A)buyers are willing and able to purchase.
B)sellers are able to produce.
C)buyers and sellers agree will be brought to market.
D)sellers are willing and able to sell.

Answer 2

D

Question 3

Figure 4-10
Refer to Figure 4-10.The movement from Point A to Point B represents a(n)

A)shift in the supply curve.
B)decrease in the quantity supplied.
C)increase in the quantity supplied.
D)Both a and b are correct.

Answer 3

C

Question 4

An increase in quantity supplied

A)results in a movement downward and to the left along a fixed supply curve.
B)results in a movement upward and to the right along a fixed supply curve.
C)shifts the supply curve to the left.
D)shifts the supply curve to the right.

Question 5

Other things equal,when the price of a good falls,the

A)quantity supplied of the good increases.
B)supply decreases.
C)quantity supplied of the good decreases.
D)demand increases.

Question 6

An decrease in the price of oranges would lead to a(n)

A)increased supply of oranges.
B)increase in the prices of inputs used in orange production.
C)a movement down and to the left along the supply curve for oranges.
D)a movement up and to the right along the supply curve for oranges.

Question 7

The law of supply states that,other things equal,when the price of a good

A)falls,the supply of the good rises.
B)rises,the quantity supplied of the good rises.
C)rises,the supply of the good falls.
D)falls,the quantity supplied of the good rises.

Question 8

Figure 4-10
Refer to Figure 4-10.The movement from Point A to Point B represents a(n)

A)increase in the price.
B)decrease in the quantity supplied.
C)shift in the supply curve.
D)Both a and b are correct.

Question 9

An increase in the price of blueberries would lead to a(n)

A)increased supply of blueberries.
B)a movement up and to the right along the supply curve for blueberries.
C)a movement down and to the left along the supply curve for blueberries.
D)Both a and b are correct.

Question 10

An increase in the price of a good would

A)increase the supply of the good.
B)increase the amount purchased by buyers.
C)give producers an incentive to produce more.
D)decrease both the quantity demanded of the good and the quantity supplied of the good.

Question 11

A decrease in the price of a good will

A)increase supply.
B)decrease supply.
C)increase quantity supplied.
D)decrease quantity supplied.

Question 12

A movement along the supply curve might be caused by a change in

A)production technology.
B)input prices.
C)expectations about future prices.
D)the price of the good or service that is being supplied.

Question 13

Which of the following would cause a movement along the supply curve for cupcakes?

A)an improvement in technology for commercial mixers
B)a decrease in the price of cupcakes
C)an increase in the price of cake flour
D)All of the above are correct.

Question 14

If the price of a good is low,

A)firms would increase profit by increasing output.
B)the quantity supplied of the good could be zero.
C)the supply curve for the good will shift to the left.
D)firms can and should raise the price of the product.

Question 15

The law of supply states that,other things equal,an increase in

A)price causes quantity supplied to increase.
B)price causes quantity supplied to decrease.
C)quantity supplied causes price to increase.
D)quantity supplied causes price to decrease.

Question 16

A decrease in quantity supplied

A)results in a movement downward and to the left along a fixed supply curve.
B)results in a movement upward and to the right along a fixed supply curve.
C)shifts the supply curve to the left.
D)shifts the supply curve to the right.

Question 17

An increase in the price of a good will

A)increase supply.
B)decrease supply.
C)increase quantity supplied.
D)decrease quantity supplied.

Question 18

Which of these statements best represents the law of supply?

A)When input prices increase,sellers produce less of the good.
B)When production technology improves,sellers produce less of the good.
C)When the price of a good decreases,sellers produce less of the good.
D)When sellers' supplies of a good increase,the price of the good increases.

Question 19

"Other things equal,when the price of a good rises,the quantity supplied of the good also rises,and when the price falls,the quantity supplied falls as well." This relationship between price and quantity supplied

A)is referred to as the law of supply.
B)applies only to a few goods in the economy.
C)is represented by a downward-sloping supply curve.
D)All of the above are correct.

Question 20

When the price of a good or service changes,

A)the demand curve shifts in the opposite direction.
B)the supply curve shifts in the opposite direction.
C)the supply curve shifts in the same direction.
D)there is a movement along a given supply curve.

Question 21

Which of the following is not held constant in a supply schedule?

A)production technology
B)the price of the good
C)the prices of inputs
D)expectations

Question 22

A leftward shift of a supply curve is called a(n)

A)increase in supply.
B)decrease in supply.
C)decrease in quantity supplied.
D)increase in quantity supplied.

Question 23

An increase in supply is represented by a

A)movement downward and to the left along a supply curve.
B)movement upward and to the right along a supply curve.
C)rightward shift of a supply curve.
D)leftward shift of a supply curve.

Question 24

The following table contains a supply schedule for a good.
Price
Quantity Supplied
$10
100
$20
Q1
If the law of supply applies to this good,then Q1 could be

A)0.
B)50.
C)100.
D)150.

Question 25

Which of the following demonstrates the law of supply?

A)When the price of leather belts rose,leather belt sellers increase their quantity supplied of leather belts.
B)When car production technology improved,car producers increased their supply of cars.
C)When sweater producers expected sweater prices to rise in the near future,they decreased their current supply of sweaters.
D)When ketchup prices rose,ketchup sellers decreased their quantity supplied of ketchup.

Question 26

Figure 4-11
Refer to Figure 4-11.The movement from point A to point B on the graph is called

A)a decrease in supply.
B)an increase in supply.
C)an increase in the quantity supplied.
D)a decrease in the quantity supplied.

Question 27

Figure 4-11
Refer to Figure 4-11.The movement from point A to point B on the graph represents

A)an increased willingness and ability on the part of suppliers to supply the good at each possible price.
B)an increase in the number of suppliers.
C)a decrease in the price of a relevant input.
D)an increase in the price of the good that is being supplied and the suppliers' responses to that price change.

Question 28

Which of the following demonstrates the law of supply?

A)When leather became more expensive,belt producers decreased their supply of belts.
B)When car production technology improved,car producers increased their supply of cars.
C)When sweater producers expected sweater prices to rise in the near future,they decreased their current supply of sweaters.
D)When ketchup prices rose,ketchup sellers increased their quantity supplied of ketchup.

Question 29

The supply curve for a good is a line that relates

A)profit and quantity supplied.
B)quantity supplied and quantity demanded.
C)price and quantity supplied.
D)price and profit.

Question 30

A rightward shift of a supply curve is called a(n)

A)increase in supply.
B)decrease in supply.
C)decrease in quantity supplied.
D)increase in quantity supplied.

Question 31

When we move along a given supply curve,

A)only price is held constant.
B)technology and price are held constant.
C)all nonprice determinants of supply are held constant.
D)all determinants of quantity supplied are held constant.

Question 32

A movement upward and to the right along a supply curve is called a(n)

A)increase in supply.
B)decrease in supply.
C)decrease in quantity supplied.
D)increase in quantity supplied.

Question 33

A supply curve slopes upward because

A)as more is produced,total cost of production falls.
B)an increase in input prices increases supply.
C)the quantity supplied of most goods and services increases over time.
D)an increase in price gives producers an incentive to supply a larger quantity.

Question 34

Figure 4-11
Refer to Figure 4-11.The movement from point A to point B on the graph is caused by

A)a decrease in the price of the good.
B)an increase in the price of the good.
C)an advance in production technology.
D)a decrease in input prices.

Question 35

The difference between a supply schedule and a supply curve is that a supply schedule

A)incorporates demand and a supply curve does not.
B)incorporates profit and a supply curve does not.
C)can shift,but a supply curve cannot shift.
D)is a table,and a supply curve is drawn on a graph.

Question 36

The line that relates the price of a good and the quantity supplied of that good is called the supply

A)schedule,and it usually slopes upward.
B)schedule,and it usually slopes downward.
C)curve,and it usually slopes upward.
D)curve,and it usually slopes downward.

Question 37

If something happens to alter the quantity supplied at any given price,then

A)we move along the supply curve.
B)the supply curve shifts.
C)the supply curve becomes steeper.
D)the supply curve becomes flatter.

Question 38

A supply schedule is a table that shows the relationship between

A)price and quantity supplied.
B)input costs and quantity supplied.
C)quantity demanded and quantity supplied.
D)profit and quantity supplied.

Question 39

Once the supply curve for a product or service is drawn,it

A)remains stable over time.
B)can shift either rightward or leftward.
C)is possible to move along the curve,but the curve will not shift.
D)tends to become steeper over time.

Question 40

A decrease in supply is represented by a

A)movement downward and to the left along a supply curve.
B)movement upward and to the right along a supply curve.
C)rightward shift of a supply curve.
D)leftward shift of a supply curve.

Question 41

Figure 4-13
Refer to Figure 4-13.If Producer A and Producer B are the only producers in the market,then the market quantity supplied when the price is $2 is

A)4 units.
B)6 units.
C)8 units.
D)10 units.

Question 42

Figure 4-12
Firm A
Firm B
Refer to Figure 4-12.If these are the only two sellers in the market,then the market quantity supplied at a price of $8 is

A)14 units.
B)15 units.
C)16 units.
D)29 units.

Question 43

When quantity supplied decreases at every possible price,we know that the supply curve has

A)shifted to the left.
B)shifted to the right.
C)not shifted;rather,we have moved along the supply curve to a new point on the same curve.
D)not shifted;rather,the supply curve has become flatter.

Question 44

A market supply curve shows how the total quantity supplied of a good varies as

A)production technology varies.
B)price varies.
C)input prices vary.
D)demand varies.

Question 45

Which of the following changes would not shift the supply curve for a good or service?

A)a change in production technology
B)a change in the price of the good or service
C)a change in expectations about the future price of the good or service
D)a change in input prices

Question 46

Suppose there are six bait and tackle shops that sell worms in a lakeside resort town in Minnesota.If we add the respective quantities that each shop would produce and sell at each of the six bait and tackle shops when the price of worms is $2 per bucket,$2.50 per bucket,and $3 per bucket,and so forth,we have found the

A)market demand curve.
B)market supply curve.
C)equilibrium curve.
D)surplus or shortage depending on market conditions.

Question 47

Figure 4-13
Refer to Figure 4-13.If Producer A and Producer B are the only producers in the market,then the market quantity supplied when the price is $4 is

A)4 units.
B)8 units.
C)12 units.
D)16 units.

Question 48

In a market,to find the total amount supplied at a particular price,we must

A)sum the quantities that individual firms are willing and able to supply at that price.
B)calculate the average of the quantities that individual firms are willing and able to supply at that price.
C)sum the costs that individual firms incur to supply the product at that price.
D)account for all determinants of demand.

Question 49

Which of the following events would cause a movement upward and to the right along the supply curve for mangos?

A)The number of sellers of mangos increases.
B)There is an advance in technology that reduces the cost of producing mangos.
C)The price of fertilizer decreases,and fertilizer is an input in the production of mangos.
D)The price of mangos rises.

Question 50

A movement downward and to the left along a supply curve is called a(n)

A)increase in supply.
B)decrease in supply.
C)decrease in quantity supplied.
D)increase in quantity supplied.

Question 51

The market supply curve

A)is found by vertically adding the individual supply curves.
B)slopes downward.
C)represents the sum of the prices that all the sellers are willing to accept for a given quantity of the good.
D)represents the sum of the quantities supplied by all the sellers at each price of the good.

Question 52

Which of the following would not shift the supply curve for mp3 players?

A)an increase in the price of mp3 players
B)a decrease in the number of sellers of mp3 players
C)an increase in the price of plastic,an input into the production of mp3 players
D)an improvement in the technology used to produce mp3 players

Question 53

Figure 4-12
Firm A
Firm B
Refer to Figure 4-12.If these are the only two sellers in the market,then the market quantity supplied at a price of $4 is

A)6 units.
B)7 units.
C)8 units.
D)14 units.

Question 54

The supply curve for stand up paddle boards

A)shifts when the price of stand up paddle boards changes because the price of stand up paddle boards is measured on the vertical axis of the graph.
B)shifts when the price of stand up paddle boards changes because the quantity supplied of stand up paddle boards is measured on the horizontal axis of the graph.
C)does not shift when the price of stand up paddle boards changes because the price of stand up paddle boards is measured on the vertical axis of the graph.
D)does not shift when the price of stand up paddle boards changes because the price of stand up paddle boards is measured on the horizontal axis of the graph.

Question 55

When quantity supplied increases at every possible price,we know that the supply curve has

A)shifted to the left.
B)shifted to the right.
C)not shifted;rather,we have moved along the supply curve to a new point on the same curve.
D)not shifted;rather,the supply curve has become flatter.

Question 56

A market supply curve shows

A)the total quantity supplied at all possible prices.
B)the average quantity supplied by producers at all possible prices.
C)how quantity supplied changes when consumer income changes.
D)suppliers' responses,in terms of the amounts they will supply,to the demands of buyers.

Question 57

The sum of all the individual supply curves for a product is called

A)total supply.
B)market supply.
C)aggregate supply.
D)total output.

Question 58

Which of the following events would cause a movement downward and to the left along the supply curve for mangos?

A)The number of sellers of mangos decreases.
B)There is an advance in technology that reduces the cost of producing mangos.
C)The price of mangos falls.
D)The price of fertilizer increases,and fertilizer is an input in the production of mangos.

Question 59

Figure 4-12
Firm A
Firm B
Refer to Figure 4-12.If these are the only two sellers in the market,then the market quantity supplied at a price of $6 is

A)2 units.
B)10 units.
C)12 units.
D)22 units.

Question 60

A market supply curve is determined by

A)vertically summing individual supply curves.
B)horizontally summing individual supply curves.
C)finding the average quantity supplied by sellers at each possible price.
D)finding the average price at which sellers are willing and able to sell a particular quantity of the good.

Question 61

Suppose there is an increase in the price of steel.We would expect the supply curve for steel beams to

A)shift rightward.
B)shift leftward.
C)become flatter.
D)remain unchanged.

Question 62

A improvement in production technology will shift the

A)supply curve to the right.
B)supply curve to the left.
C)demand curve to the right.
D)demand curve to the left.

Question 63

If suppliers expect the price of their product to fall in the future,then they will

A)decrease supply now.
B)increase supply now.
C)decrease supply in the future but not now.
D)increase supply in the future but not now.

Question 64

Which of the following might cause the supply curve for an inferior good to shift to the right?

A)an increase in input prices
B)a decrease in consumer income
C)an improvement in production technology that makes production of the good more profitable
D)a decrease in the number of sellers in the market

Question 65

Figure 4-13
Refer to Figure 4-13.If Producer A and Producer B are the only producers in the market,then the market quantity supplied when the price is $6 is

A)4 units.
B)6 units.
C)12 units.
D)18 units.

Question 66

Which of the following would shift the supply of Green Bay Packers football jerseys to the left?

A)The Green Bay Packers make it to the Super Bowl.
B)The price of the jerseys increases by $15.
C)The technology of sewing machines use to make the jerseys improves.
D)The cost of the fabric used to make the jerseys increases.

Question 67

Today,producers changed their expectations about the future.This change

A)can cause a movement along a supply curve.
B)can affect future supply,but not today's supply.
C)can affect today's supply.
D)cannot affect either today's supply or future supply.

Question 68

Lead is an important input in the production of crystal.If the price of lead decreases,then we would expect the supply of

A)crystal to be unaffected.
B)crystal to decrease.
C)crystal to increase.
D)lead to increase.

Question 69

Suppose you make jewelry.If the price of gold falls,then we would expect you to

A)be willing and able to produce less jewelry than before at each possible price.
B)be willing and able to produce more jewelry than before at each possible price.
C)face a greater demand for your jewelry.
D)face a weaker demand for your jewelry.

Question 70

Matthew bakes apple pies that he sells at the local farmer's market.If the price of apples increases,the

A)supply curve for Matthew's pies will increase.
B)supply curve for Matthew's pies will decrease.
C)demand curve for Matthew's pies will increase.
D)demand curve for Matthew's pies will decrease.

Question 71

An improvement in production technology will

A)increase a firm's costs and increase its supply.
B)increase a firm's costs and decrease its supply.
C)decrease a firm's costs and increase its supply.
D)decrease a firm's costs and decrease its supply.

Question 72

If car manufacturers begin using new labor-saving technology on their assembly lines,we would not expect

A)a smaller quantity of labor to be used.
B)the supply of cars to increase.
C)the firms' costs to fall.
D)individual car manufacturers to move up and to the right along their individual supply curves.

Question 73

Figure 4-13
Refer to Figure 4-13.If Producer A and Producer B are the only producers in the market,then the market quantity supplied when the price is $8 is

A)8 units.
B)16 units.
C)24 units.
D)32 units.

Question 74

Workers at a bicycle assembly plant currently earn the mandatory minimum wage.If the federal government increases the minimum wage by $1.00 per hour,then it is likely that the

A)demand for bicycle assembly workers will increase.
B)supply of bicycles will shift to the right.
C)supply of bicycles will shift to the left.
D)firm must increase output to maintain profit levels.

Question 75

Suppose an increase in the price of rubber coincides with an advance in the technology of tire production.As a result of these two events,the demand for tires

A)decreases,and the supply of tires increases.
B)is unaffected,and the supply of tires decreases.
C)is unaffected,and the supply of tires increases.
D)None of the above is necessarily correct.

Question 76

Ashley bakes bread that she sells at the local farmer's market.If she purchases a new convection oven that reduces the costs of baking bread,the

A)supply curve for Ashley's bread will increase.
B)supply curve for Ashley's bread will decrease.
C)demand curve for Ashley's bread will increase.
D)demand curve for Ashley's bread will decrease.

Question 77

Wheat is the main input in the production of flour.If the price of wheat decreases,then we would expect the

A)demand for flour to increase.
B)demand for flour to decrease.
C)supply of flour to increase.
D)supply of flour to decrease.

Question 78

The supply curve for portable charcoal grills shifts

A)only when production technology changes.
B)when a determinant of the supply of portable charcoal grills other than the price of portable charcoal grills changes.
C)when any determinant of the supply of portable charcoal grills changes.
D)only when the number of sellers of portable charcoal grills changes.

Question 79

Suppose there is a decrease in the price of corn.If corn is an input into the production of ethanol,we would expect the supply curve for ethanol to

A)shift rightward.
B)shift leftward.
C)become flatter.
D)remain unchanged.

Question 80

If sellers expect higher basket prices in the near future,the current

A)supply of baskets will increase.
B)supply of baskets will decrease.
C)supply of baskets will be unaffected.
D)demand for baskets will decrease.