Question 1

If,in the market for bananas,the supply curve has shifted to the right,then
A)the supply of bananas has increased.
B)the quantity of bananas supplied has increased.
C)the supply of bananas has decreased.
D)the quantity of bananas supplied has decreased.

Accepted Answer

When the supply curve shifts to the right, it means that producers are willing and able to supply more bananas at any given price. This results in an increase in the overall supply of bananas available in the market.

Question 2

A supply curve
A)is a table that shows the relationship between the price of a product and the quantity of the product supplied.
B)is a curve that shows the relationship between the price of a product and the quantity of the product supplied.
C)is the relationship between the supply of a good and the cost of producing the good.
D)is a curve that shows the relationship between the price of a product and the quantity of the product that producers and consumers are willing to exchange.

Accepted Answer

A supply curve is a graphical representation of the relationship between the price of a product and the quantity of the product supplied. It is not a table, nor is it only related to the cost of production. Additionally, it does not include the willingness of consumers to exchange the product, as that would be reflected in the demand curve.

Question 3

The supply curve for watches
A)shows the supply of watches consumers are willing and able to buy at any given price.
B)is downward sloping.
C)shows the relationship between the quantity of watches firms are willing and able to supply and the quantity of watches consumers are willing and able to purchase.
D)shows the relationship between the price of watches and the quantity of watches supplied.

Accepted Answer

The supply curve for watches shows the relationship between the price of watches and the quantity of watches supplied by firms in the market. As the price of watches increases, the quantity of watches supplied also increases, and vice versa. This relationship is reflected in the downward-sloping shape of the supply curve. Therefore, option D is the correct answer. Option A is incorrect because the supply curve represents the behavior of producers, not consumers. Option B is incorrect because the supply curve has a downward slope, not an upward slope. Option C is incorrect because the supply curve only represents the behavior of firms in the market, not consumers.

Question 4

________ means the supply curve has shifted to the right,while ________ refers to a movement along a given supply curve in response to an increase in price.
A)An increase in supply; a decrease in supply
B)A decrease in supply; an increase in supply
C)An increase in supply; an increase in quantity supplied
D)A decrease in supply; a decrease in quantity supplied

Accepted Answer

An increase in supply means that the entire supply curve has shifted to the right, indicating that more is being supplied at every price level. On the other hand, an increase in quantity supplied refers to a movement along a given supply curve that occurs in response to an increase in price. Therefore, choice C is correct.

Question 5

Alberta ranchers can raise either cattle or sheep on their land.Which of the following would cause the supply of sheep to increase?
A)an increase in the price of sheep
B)a decrease in the price of cattle
C)an increase in the demand for cattle
D)an increase in the price of sheep feed

Accepted Answer

If the price of cattle decreases, ranchers may switch to raising sheep instead, leading to an increase in supply of sheep. An increase in the price of sheep (A) would not necessarily lead to an increase in supply as ranchers may choose to keep the same number of sheep for breeding purposes. An increase in demand for cattle (C) or an increase in the price of sheep feed (D) would not affect the supply of sheep.

Question 6

Quantity supplied refers to the amount of a good or service that a firm is willing and able to supply at a given price.

Accepted Answer

Quantity supplied is a fundamental concept in economics, which refers to the amount of a good or service that producers are willing to supply at a given price.

Question 7

A decrease in the price of GPS systems will result in
A)a smaller quantity of GPS systems supplied.
B)a larger quantity of GPS systems supplied.
C)a decrease in the demand for GPS systems.
D)an increase in the supply of GPS systems.

Accepted Answer

A decrease in the price of GPS systems will lead to a smaller quantity of GPS systems supplied, according to the law of supply, which states that there is a direct relationship between price and quantity supplied.

Question 8

An increase in the number of firms in a market will cause the quantity of a good supplied to increase.

Accepted Answer

The answer of An increase in the number of firms...

Question 9

What is the law of supply? What does this law imply about the shape of the supply curve?

Accepted Answer

The answer of What is the law of supply? What...

Question 10

If a firm expects that the price of its product will be higher in the future than it is today,
A)the firm will go out of business.
B)the firm has an incentive to increase supply now and decrease supply in the future.
C)the firm has an incentive to decrease quantity supplied now and increase quantity supplied in the future.
D)the firm has an incentive to decrease supply now and increase supply in the future.

Accepted Answer

If a firm expects the price of its product to be higher in the future than it is today, it has an incentive to reduce the quantity supplied now and increase supply in the future. By reducing supply now, it can help to drive up the price and increase profits in the short term. Then, once the price has gone up, it can increase supply to take advantage of the higher prices in the long term. This strategy allows the firm to maximize its profits over time.

Question 11

Danielle Ocean pays for monthly pool maintenance for her home swimming pool.Last week the owner of the pool service informed Danielle that she will have to raise her monthly service fee because of increases in the price of pool chemicals.How is the market for pool maintenance services affected by this?
A)There is an increase in the supply of pool maintenance services.
B)There is a decrease in the demand for pool maintenance services.
C)There is a decrease in the quantity of pool maintenance services supplied.
D)There is a decrease in the supply of pool maintenance services.

Accepted Answer

The increase in the price of pool chemicals has likely increased the cost of providing pool maintenance services, causing the pool service owner to raise his price. This will likely lead to a decrease in the supply of pool maintenance services as some providers may choose to exit the market or reduce the level of services they offer. Therefore, the correct answer is D.

Question 12

A change in supply is represented by a shift of the supply curve.

Accepted Answer

A change in supply is a shift of the entire supply curve, either to the left or to the right. This can be caused by factors such as changes in production costs, technology, or the number of suppliers in the market.

Question 13

Last month,the Tecumseh Corporation supplied 400 units of three-ring binders at $6 per unit.This month,the company supplied the same quantity of binders at $4 per unit.Based on this evidence,Tecumseh has experienced
A)a decrease in supply.
B)an increase in supply.
C)an increase in the quantity supplied.
D)a decrease in the quantity supplied.

Accepted Answer

The decrease in price of the binders from $6 to $4 per unit indicates an increase in supply. This suggests that Tecumseh has either found a way to produce the binders at a lower cost or has increased their production capacity.

Question 14

An increase in the quantity of a product supplied is caused by an increase in the price of the product.

Accepted Answer

According to the law of supply, when the price of a product increases, the quantity supplied also increases as producers are motivated to supply more at higher prices to earn more profit.

Question 15

If,in the market for apples,the supply has decreased,then
A)the supply curve for apples has shifted to the right.
B)there has been a movement upwards along the supply curve for apples.
C)the supply curve for apples has shifted to the left.
D)there has been a movement downwards along the supply curve for apples.

Accepted Answer

A decrease in supply means that there is less of a good available at any given price. This leads to a leftward shift in the supply curve, indicating that producers are willing to supply less of the good at every price level.

Question 16

If a firm has an incentive to increase supply now and decrease supply in the future,the firm expects that the
A)price of its product will be lower in the future than it is today.
B)price of its product will be higher in the future than it is today.
C)price of inputs will be lower in the future than they are today.
D)demand for the product will be lower in the future than it is today.

Accepted Answer

If a firm has an incentive to increase supply now and decrease supply in the future, it implies that the firm expects the price of its product to be lower in the future than it is today. This expectation may arise due to either a change in market conditions (e.g., competition, consumer preferences) or the firm's own predictions of future demand and supply. To take advantage of the current market conditions, the firm will increase its supply now. However, if it expects that the price will decrease in the future, it will reduce its supply at that time.

Question 17

Which of the following would shift the supply curve for music streaming apps to the right?
A)an increase in the price of a substitute in production
B)an increase in consumer income (assuming that all music streaming apps are normal goods)
C)a decrease in the number of firms that produce music streaming apps
D)a decrease in the price of an input used to produce music streaming apps

Accepted Answer

According to the law of supply, a decrease in the price of an input used to produce music streaming apps would lower the cost of production, encouraging producers to increase their supply of music streaming apps. This shift would result in a rightward shift of the supply curve.

Question 18

Indicate whether each of the following situations would shift the supply curve to the left,to the right,or not at all.
a.An increase in the number of firms in the market
b.An increase in the current price of the product
c.A decrease in productivity
d.An increase in the expected future price of a product
e.A decrease in the price of an input

Accepted Answer

The answer of Indicate whether each of the following situations...

Question 19

The popularity of digital cameras has enticed large discount stores like Walmart and Costco to offer digital photo printing services.How does this affect the digital photo printing market?
A)The demand curve for digital photo printing services shifts to the right.
B)The demand curve for digital photo printing services shifts to the left.
C)The supply curve for digital photo printing services shifts to the right.
D)The supply curve for digital photo printing services shifts to the left.

Accepted Answer

The answer of The popularity of digital cameras has enticed...

Question 20

From a supply perspective,what impact would an increase in the price of motorcycles have on the market for motorcycles?

Accepted Answer

The answer of From a supply perspective,what impact would an...

Quiz 3: Where Prices Come From: The Interaction of Supply and Demand

If,in the market for bananas,the supply curve has shifted to the right,then

A supply curve

The supply curve for watches

means the supply curve has shifted to the right,while refers to a movement along a given supply curve in response to an increase in price.

Alberta ranchers can raise either cattle or sheep on their land.Which of the following would cause the supply of sheep to increase?

Quantity supplied refers to the amount of a good or service that a firm is willing and able to supply at a given price.

A decrease in the price of GPS systems will result in

An increase in the number of firms in a market will cause the quantity of a good supplied to increase.

What is the law of supply? What does this law imply about the shape of the supply curve?

If a firm expects that the price of its product will be higher in the future than it is today,

A change in supply is represented by a shift of the supply curve.

Last month,the Tecumseh Corporation supplied 400 units of three-ring binders at $6 per unit.This month,the company supplied the same quantity of binders at $4 per unit.Based on this evidence,Tecumseh has experienced

An increase in the quantity of a product supplied is caused by an increase in the price of the product.

If,in the market for apples,the supply has decreased,then

If a firm has an incentive to increase supply now and decrease supply in the future,the firm expects that the

Which of the following would shift the supply curve for music streaming apps to the right?

The popularity of digital cameras has enticed large discount stores like Walmart and Costco to offer digital photo printing services.How does this affect the digital photo printing market?

From a supply perspective,what impact would an increase in the price of motorcycles have on the market for motorcycles?