Question 1

If producers form expectations that copper prices will be higher in the future, then this will shift the:

Accepted Answer

The answer of If producers form expectations that copper prices...

Question 2

A farmer can grow soy or sorghum. If the price of soy increases, the opportunity cost of growing sorghum ______, shifting the supply curve of sorghum ______.

Accepted Answer

If the price of soy increases, the farmer will have a higher opportunity cost of growing sorghum since they could make more profit by growing soy instead. This means that the supply of sorghum will decrease as farmers switch to growing more soy, shifting the supply curve for sorghum up and to the left. Therefore, choice B is the correct answer.

Question 3

Joe runs a landscape company and uses one of his home's bedrooms as a home office. This office could be used to earn rental income from college students. If average rental income in Joe's neighborhood were to rise:

Accepted Answer

If the average rental income in Joe's neighborhood were to rise, the opportunity cost of using a bedroom as a home office would increase. This is because Joe could potentially earn more by renting out the bedroom to college students than he could by using it as a home office for his landscape company. Therefore, Joe would be giving up more by using the space for his own business rather than renting it out.

Question 4

A firm produces volleyballs and soccer balls. What happens to the supply of soccer balls if the market price of volleyballs increases?

Accepted Answer

As the market price of volleyballs increases, the opportunity cost of producing soccer balls (in terms of forgone profits from producing more profitable volleyballs) also increases. Therefore, firms will likely shift their production from soccer balls to volleyball production, resulting in a decrease in the supply of soccer balls.

Question 5

Figure A: Supply Right Shift
Figure B: Supply Left Shift 
Refer to the two figures. Which statement is TRUE?

Accepted Answer

The answer of Figure A: Supply Right Shift
Figure B: Supply...

Question 6

A farmer can grow either apples or oranges. An increase in the price of apples ______ the opportunity cost of growing oranges so that the supply curve of oranges shifts ______.

Accepted Answer

The answer of A farmer can grow either apples or...

Question 7

Recall your reading about NAFTA in the textbook. Why did the NAFTA agreement result in an increase in lumber supply in the United States?

Accepted Answer

NAFTA reduced barriers to trade between the United States and Canada, allowing Canadian lumber to enter the United States more easily. This increased the supply of lumber in the United States.

Question 8

What will happen to the supply of workers 18 to 21 years after a baby boom?

Accepted Answer

After a baby boom, there will be an increase in the number of individuals entering the workforce. As such, the supply of workers within the 18-21 age range will increase as more individuals within this age range enter the labor market.

Question 9

Use the following to answer questions: Figure: Supply Shifts -(Figure: Supply Shifts) In the figure, the initial supply curve is S₁. If producers form expectations that the price will be lower in the near future, S₁will:

Accepted Answer

If producers expect lower prices in the near future, they will try to sell more now and supply will increase, causing the supply curve to shift to the right. Therefore, the new supply curve will be S₃, which is represented by choice B.

Question 10

One result of the North American Free Trade Agreement was that the number of Canadian lumber companies selling in United States markets _____, causing a(n) _____ in the total market supply of lumber in the United States.

Accepted Answer

The answer of One result of the North American Free...

Question 11

A decrease in the opportunity cost of steel production will:

Accepted Answer

A decrease in the opportunity cost of steel production would mean that suppliers could produce steel more easily and efficiently. This would make them more likely to produce steel, thus increasing the supply of steel in the market. The increase in supply would then shift the supply curve down and to the right, leading to a decrease in the price of steel.

Question 12

If producers expect the price of a good to fall in the future, they might:

Accepted Answer

The answer of If producers expect the price of a...

Question 13

NAFTA made it ______ for Canadian lumber producers to sell lumber in the United States, shifting the supply curve of lumber to the ______.

Accepted Answer

The answer of NAFTA made it ______ for Canadian lumber...

Question 14

An increase in the future expected price of a storable good ________ supply.

Accepted Answer

The answer of An increase in the future expected price...

Question 15

Suppose a new study predicts that the price of hybrid cars is expected to decrease in the near future. As a result, we would expect:

Accepted Answer

If the price of hybrid cars is expected to decrease, then producers may want to ensure that they sell their existing inventory of hybrid cars before the price drop reduces their profits. Therefore, they would likely increase the supply of hybrid cars today to meet potential demand.

Question 16

In 2011, revolutions and uprisings spread across North Africa and the Middle East, where a lot of oil is pumped. How did this affect the oil market?

Accepted Answer

The revolutions and uprisings in North Africa and the Middle East disrupted oil production and transportation, causing a decrease in supply. Therefore, the supply curve for oil shifted to the left.

Question 17

In the early 1980s, movie rentals averaged $5 a night; by the early 1990s that average was $1 per night. This is an example of a supply curve shifter based on:

Accepted Answer

The decrease in the price of movie rentals from $5 to $1 per night suggests that the supply curve has shifted to the right, which means that more suppliers have entered the market. The increase in the number of VCRs owned by consumers may have also contributed to the increase in supply of movie rentals. However, this alone would not have caused such a significant decrease in price. Changes in tastes and preferences would have affected the demand curve, but this is not relevant to the shift in the supply curve. A decrease in the wages of workers in the video rental stores would not have affected the supply curve either.

Question 18

Which of the following choices correctly illustrates how changes in opportunity costs affect supply?

Accepted Answer

The answer of Which of the following choices correctly illustrates...

Question 19

A change in price is reflected by a movement along the same demand curve while a change in demand refers to a shift of the entire demand curve.

Accepted Answer

A change in the price of a good or service results in a movement along the same demand curve, while a change in any other variable that affects demand, such as income, consumer preferences, or the price of substitutes or complements, causes a shift in the entire demand curve.

Question 20

Use the following to answer questions: Figure: Supply Shifts -(Figure: Supply Shifts) In the figure, the initial supply curve is S₁. Producers engage in market speculation with the belief that the price of the good will increase in the near future. This would be represented in the figure by shifting the:

Accepted Answer

The answer of Use the following to answer questions: Figure:...

Quiz 3: Supply and Demand

If producers form expectations that copper prices will be higher in the future, then this will shift the:

A farmer can grow soy or sorghum. If the price of soy increases, the opportunity cost of growing sorghum , shifting the supply curve of sorghum .

Joe runs a landscape company and uses one of his home's bedrooms as a home office. This office could be used to earn rental income from college students. If average rental income in Joe's neighborhood were to rise:

A firm produces volleyballs and soccer balls. What happens to the supply of soccer balls if the market price of volleyballs increases?

Figure A: Supply Right Shift Figure B: Supply Left Shift Refer to the two figures. Which statement is TRUE?

A farmer can grow either apples or oranges. An increase in the price of apples the opportunity cost of growing oranges so that the supply curve of oranges shifts .

Recall your reading about NAFTA in the textbook. Why did the NAFTA agreement result in an increase in lumber supply in the United States?

What will happen to the supply of workers 18 to 21 years after a baby boom?

Use the following to answer questions: Figure: Supply Shifts -(Figure: Supply Shifts) In the figure, the initial supply curve is S₁. If producers form expectations that the price will be lower in the near future, S₁will:

One result of the North American Free Trade Agreement was that the number of Canadian lumber companies selling in United States markets _, causing a(n) _ in the total market supply of lumber in the United States.

A decrease in the opportunity cost of steel production will:

If producers expect the price of a good to fall in the future, they might:

NAFTA made it for Canadian lumber producers to sell lumber in the United States, shifting the supply curve of lumber to the .

An increase in the future expected price of a storable good ________ supply.

Suppose a new study predicts that the price of hybrid cars is expected to decrease in the near future. As a result, we would expect:

In 2011, revolutions and uprisings spread across North Africa and the Middle East, where a lot of oil is pumped. How did this affect the oil market?

In the early 1980s, movie rentals averaged $5 a night; by the early 1990s that average was $1 per night. This is an example of a supply curve shifter based on:

Which of the following choices correctly illustrates how changes in opportunity costs affect supply?

A change in price is reflected by a movement along the same demand curve while a change in demand refers to a shift of the entire demand curve.

Quiz 3: Supply and Demand

If producers form expectations that copper prices will be higher in the future, then this will shift the:

A farmer can grow soy or sorghum. If the price of soy increases, the opportunity cost of growing sorghum ______, shifting the supply curve of sorghum ______.

Joe runs a landscape company and uses one of his home's bedrooms as a home office. This office could be used to earn rental income from college students. If average rental income in Joe's neighborhood were to rise:

A firm produces volleyballs and soccer balls. What happens to the supply of soccer balls if the market price of volleyballs increases?

Figure A: Supply Right Shift Figure B: Supply Left Shift Refer to the two figures. Which statement is TRUE?

A farmer can grow either apples or oranges. An increase in the price of apples ______ the opportunity cost of growing oranges so that the supply curve of oranges shifts ______.

Recall your reading about NAFTA in the textbook. Why did the NAFTA agreement result in an increase in lumber supply in the United States?

What will happen to the supply of workers 18 to 21 years after a baby boom?

Use the following to answer questions: Figure: Supply Shifts -(Figure: Supply Shifts) In the figure, the initial supply curve is S1. If producers form expectations that the price will be lower in the near future, S1 will:

One result of the North American Free Trade Agreement was that the number of Canadian lumber companies selling in United States markets _____, causing a(n) _____ in the total market supply of lumber in the United States.

A decrease in the opportunity cost of steel production will:

If producers expect the price of a good to fall in the future, they might:

NAFTA made it ______ for Canadian lumber producers to sell lumber in the United States, shifting the supply curve of lumber to the ______.

An increase in the future expected price of a storable good ________ supply.

Suppose a new study predicts that the price of hybrid cars is expected to decrease in the near future. As a result, we would expect:

In 2011, revolutions and uprisings spread across North Africa and the Middle East, where a lot of oil is pumped. How did this affect the oil market?

In the early 1980s, movie rentals averaged $5 a night; by the early 1990s that average was $1 per night. This is an example of a supply curve shifter based on:

Which of the following choices correctly illustrates how changes in opportunity costs affect supply?

A change in price is reflected by a movement along the same demand curve while a change in demand refers to a shift of the entire demand curve.

A farmer can grow soy or sorghum. If the price of soy increases, the opportunity cost of growing sorghum , shifting the supply curve of sorghum .

A farmer can grow either apples or oranges. An increase in the price of apples the opportunity cost of growing oranges so that the supply curve of oranges shifts .

Use the following to answer questions: Figure: Supply Shifts -(Figure: Supply Shifts) In the figure, the initial supply curve is S₁. If producers form expectations that the price will be lower in the near future, S₁will:

One result of the North American Free Trade Agreement was that the number of Canadian lumber companies selling in United States markets _, causing a(n) _ in the total market supply of lumber in the United States.

NAFTA made it for Canadian lumber producers to sell lumber in the United States, shifting the supply curve of lumber to the .