Question 1

In which statement is the term "supply" used correctly? (1)An increase in the number of suppliers of copper will lead to an increase in the supply of copper.(2)An increase in the number of suppliers of copper will likely lead to a decrease in the quantity supplied of copper.

Accepted Answer

The term "supply" is used correctly in the first statement, as an increase in the number of suppliers of copper would lead to an increase in the overall supply of copper in the market. The second statement is incorrect, as an increase in the number of suppliers would likely lead to an increase in the quantity supplied, not a decrease.

Question 2

In which statement is the term "supply" used correctly? (1)An increase in the price of leather will cause a decrease in the supply of leather.(2)An increase in the price of leather will cause a decrease in the supply of leather boots.

Accepted Answer

The answer of In which statement is the term "supply"...

Question 3

Suppose that some resource X is necessary to produce some good Y.If the price of X falls

Accepted Answer

A decrease in the price of resource X will lead to a lower cost of production for producing good Y, which will increase the profitability of producing good Y. Therefore, firms will be willing to produce more of good Y at each price level, leading to a shift in the supply curve of good Y to the right.

Question 4

To say that the supply curve is positively sloped means that

Accepted Answer

A positively sloped supply curve indicates that as the price of a good or service increases, producers are willing and able to supply more of it, reflecting a direct relationship between price and quantity supplied.

Question 5

An equilibrium price can be described as

Accepted Answer

An equilibrium price is the price at which the quantity demanded is equal to the quantity supplied, resulting in neither excess demand nor excess supply. It is the price at which market forces have effectively balanced the buying decisions of consumers and the selling decisions of producers.

Question 6

A "decrease in supply" refers to which of the following?

Accepted Answer

A decrease in supply refers to a leftward shift in the supply curve, indicating that less quantity will be supplied at every possible price level. This shift can be caused by various factors such as an increase in production costs or a decrease in technological advancements.

Question 7

A fall in the price of potatoes,which are used in the production of french fries,will

Accepted Answer

A fall in the price of potatoes, which are used in the production of french fries, will lead to a decrease in the cost of production for french fries. This, in turn, will encourage producers to supply more french fries into the market, as they can now produce them at a lower cost, resulting in an increase in the supply of french fries. Therefore, the supply curve of french fries will shift to the right.

Question 8

Suppose that a newer way to produce a good is discovered,which reduces production costs for the good.This will cause

Accepted Answer

If production costs are reduced, producers can afford to produce more of the good at any given price. This will result in an increase in supply, which is represented by a rightward shift of the supply curve. Therefore, the correct answer is (E) an increase in supply (a rightward shift of the supply curve).

Question 9

FIGURE 3-2
-Refer to Figure 3-2.The movement along the supply curve,S,from point a to point c,could be caused by

Accepted Answer

Movement along the supply curve occurs due to a change in the price of the good itself. Therefore, an increase in the price of energy-efficient light bulbs would cause a movement along the supply curve from point a to point c. A decrease in the price of energy-efficient light bulbs (option A), an increase in the number of suppliers of energy-efficient light bulbs (option C), or a decrease in the price of ordinary light bulbs (option E) would all result in a shift in the supply curve, not a movement along it. Option B is irrelevant to the movement along the supply curve for energy-efficient light bulbs.

Question 10

Choose the best description of an "equilibrium price."

Accepted Answer

An equilibrium price is the price point where the quantity demanded by consumers is equal to the quantity supplied by producers. This is the point where the market is in balance, where there is no shortage or surplus of the commodity. The equilibrium price is determined by the interaction of supply and demand forces in the market, and it can move up or down depending on changes in either of these forces.

Question 11

An improvement in the technology used to produce solar panels will

Accepted Answer

An improvement in technology used to produce solar panels would make it easier and cheaper to produce these panels. This would result in an increase in the quantity supplied, leading to a rightward shift in the supply curve. Therefore, the correct answer is E.

Question 12

FIGURE 3-2
-Refer to Figure 3-2.If the supply curve is given by S,the ________ energy-efficient light bulbs is 175 000 when the price is $9.

Accepted Answer

The question is referring to the quantity supplied at a certain price, therefore the answer must refer to the quantity supplied of a specific product, which is given as energy-efficient light bulbs. Only choice A refers to the quantity supplied of a product.

Question 13

"Excess demand" can also be described as

Accepted Answer

Excess demand refers to a situation where the quantity demanded exceeds the quantity supplied at a given price, resulting in a shortage of the good or service. It is also known as a demand-supply gap or market disequilibrium.

Question 14

A leftward shift in the supply curve indicates

Accepted Answer

A leftward shift in the supply curve means that suppliers are willing to supply less at each price, which indicates a decrease in the quantity supplied at each price.

Question 15

FIGURE 3-2 -Refer to Figure 3-2.A shift of the supply curve for energy-efficient light bulbs from S to S² could be caused by

Accepted Answer

The shift of the supply curve to the left from S to S² indicates a decrease in the quantity supplied at each price level. This can be caused by an increase in the cost of production, such as the elimination of government subsidies to suppliers of energy-efficient light bulbs. Option A and B would affect the demand for energy-efficient light bulbs but not the supply curve. Option C and E would affect the demand for energy-efficient light bulbs and not the supply curve.

Question 16

FIGURE 3-2 -Refer to Figure 3-2.A shift of the supply curve from S to S¹ could be caused by

Accepted Answer

A decrease in the price of glass, a major input in the production of energy-efficient light bulbs, would lower production costs, leading to an increase in supply, which shifts the supply curve from S to S¹.

Question 17

A rightward shift in the supply curve indicates

Accepted Answer

A rightward shift in the supply curve indicates an increase in the quantity supplied at each price. This can be caused by various factors such as technological advances, decrease in input costs, or an increase in the number of suppliers.

Question 18

In which statement is the term "supply" used correctly? (1)An increase in the price of copper will lead to an increase in the quantity supplied of copper.(2)An increase in the price of copper will lead to an increase in the supply of copper.

Accepted Answer

The term "supply" refers to the total amount of a product or service that is available to consumers, while "quantity supplied" refers to the amount of a good or service that producers are willing and able to sell at a specific price. Statement (1) correctly uses "quantity supplied" to describe the change in the amount of copper available at a new price, which is a direct response to price changes. Statement (2) incorrectly suggests that the supply curve itself shifts due to a price change, which is not accurate; price changes result in movements along the supply curve, not shifts of the supply curve.

Question 19

An increase in the number of firms wanting to provide accounting services will cause a ________ for accounting services.

Accepted Answer

An increase in the number of firms wanting to provide accounting services will increase the supply of accounting services in the market, leading to a rightward shift in the supply curve. This will result in a decrease in the equilibrium price and an increase in the quantity of accounting services exchanged in the market.

Question 20

The supply for some good or service will decrease if

Accepted Answer

An increase in input prices means that the cost of producing the good or service has increased, making it less profitable for suppliers to produce the same quantity. Therefore, the supply for the good or service will decrease.

Quiz 3: Demand, Supply, and Price

In which statement is the term "supply" used correctly? (1) An increase in the number of suppliers of copper will lead to an increase in the supply of copper.(2) An increase in the number of suppliers of copper will likely lead to a decrease in the quantity supplied of copper.

In which statement is the term "supply" used correctly? (1) An increase in the price of leather will cause a decrease in the supply of leather.(2) An increase in the price of leather will cause a decrease in the supply of leather boots.

Suppose that some resource X is necessary to produce some good Y.If the price of X falls

To say that the supply curve is positively sloped means that

An equilibrium price can be described as

A "decrease in supply" refers to which of the following?

A fall in the price of potatoes,which are used in the production of french fries,will

Suppose that a newer way to produce a good is discovered,which reduces production costs for the good.This will cause

FIGURE 3-2 -Refer to Figure 3-2.The movement along the supply curve,S,from point a to point c,could be caused by

Choose the best description of an "equilibrium price."

An improvement in the technology used to produce solar panels will

FIGURE 3-2 -Refer to Figure 3-2.If the supply curve is given by S,the ________ energy-efficient light bulbs is 175 000 when the price is $9.

"Excess demand" can also be described as

A leftward shift in the supply curve indicates

FIGURE 3-2 -Refer to Figure 3-2.A shift of the supply curve for energy-efficient light bulbs from S to S² could be caused by

FIGURE 3-2 -Refer to Figure 3-2.A shift of the supply curve from S to S¹ could be caused by

A rightward shift in the supply curve indicates

In which statement is the term "supply" used correctly? (1) An increase in the price of copper will lead to an increase in the quantity supplied of copper.(2) An increase in the price of copper will lead to an increase in the supply of copper.

An increase in the number of firms wanting to provide accounting services will cause a ________ for accounting services.

The supply for some good or service will decrease if

Quiz 3: Demand, Supply, and Price

In which statement is the term "supply" used correctly? (1) An increase in the number of suppliers of copper will lead to an increase in the supply of copper.(2) An increase in the number of suppliers of copper will likely lead to a decrease in the quantity supplied of copper.

In which statement is the term "supply" used correctly? (1) An increase in the price of leather will cause a decrease in the supply of leather.(2) An increase in the price of leather will cause a decrease in the supply of leather boots.

Suppose that some resource X is necessary to produce some good Y.If the price of X falls

To say that the supply curve is positively sloped means that

An equilibrium price can be described as

A "decrease in supply" refers to which of the following?

A fall in the price of potatoes,which are used in the production of french fries,will

Suppose that a newer way to produce a good is discovered,which reduces production costs for the good.This will cause

FIGURE 3-2 -Refer to Figure 3-2.The movement along the supply curve,S,from point a to point c,could be caused by

Choose the best description of an "equilibrium price."

An improvement in the technology used to produce solar panels will

FIGURE 3-2 -Refer to Figure 3-2.If the supply curve is given by S,the ________ energy-efficient light bulbs is 175 000 when the price is $9.

"Excess demand" can also be described as

A leftward shift in the supply curve indicates

FIGURE 3-2 -Refer to Figure 3-2.A shift of the supply curve for energy-efficient light bulbs from S to S2 could be caused by

FIGURE 3-2 -Refer to Figure 3-2.A shift of the supply curve from S to S1 could be caused by

A rightward shift in the supply curve indicates

In which statement is the term "supply" used correctly? (1) An increase in the price of copper will lead to an increase in the quantity supplied of copper.(2) An increase in the price of copper will lead to an increase in the supply of copper.

An increase in the number of firms wanting to provide accounting services will cause a ________ for accounting services.

The supply for some good or service will decrease if

FIGURE 3-2 -Refer to Figure 3-2.A shift of the supply curve for energy-efficient light bulbs from S to S² could be caused by

FIGURE 3-2 -Refer to Figure 3-2.A shift of the supply curve from S to S¹ could be caused by