Question 1

A decrease in the number of sellers in the market causes

Accepted Answer

A decrease in the number of sellers in the market means there is less supply available, which leads to a shift in the supply curve to the left.

Question 2

Figure 4-15 
-Refer to Figure 4-15. Which of the following would cause the supply curve to shift from Supply A to Supply C in the market for sail boats?

Accepted Answer

A decrease in the price of fiberglass and sail cloth would lower the cost of production for sail boats, leading to an increase in supply and a shift of the supply curve to the right from Supply A to Supply C. The other choices would not directly impact the supply of sail boats.

Question 3

A CPA recently has come to expect higher prices for expert tax advice in the near future. We would expect

Accepted Answer

The answer of A CPA recently has come to expect...

Question 4

Figure 4-14 
-Refer to Figure 4-14. Which of the following would explain a movement from E1 to E2?

Accepted Answer

A movement from E1 to E2 implies an increase in the cost of production, which could be caused by an increase in the cost of an input. None of the other choices directly explain such a movement.

Question 5

Today's supply curve for iPods could shift in response to a change in

Accepted Answer

The supply curve for iPods is determined by the production costs and the level of technology involved in producing them. These factors are not affected by today's price of iPods or the number of buyers of iPods. However, the expected future price of iPods can influence the production decisions of firms and shift the supply curve accordingly. For example, if firms expect the price of iPods to increase in the future, they may increase production now, leading to a rightward shift in the supply curve.

Question 6

Figure 4-15 
-Refer to Figure 4-15. Which of the following would cause the supply curve to shift from Supply B to Supply A in the market for butter?

Accepted Answer

The answer of Figure 4-15 
-Refer to Figure 4-15. Which...

Question 7

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

Accepted Answer

The answer of If suppliers expect the price of their...

Question 8

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

Accepted Answer

If sellers expect higher basket prices in the near future, they will decrease their supply of baskets in the current market in order to wait for the higher prices in the future. This means that the supply of baskets will decrease.

Question 9

Figure 4-15 
-Refer to Figure 4-15. Which of the following would cause the supply curve to shift from Supply A to Supply C in the market for beach towels?

Accepted Answer

A decrease in the price of cotton will lower the cost of producing beach towels, leading firms to increase their supply even at the same price level, causing the supply curve to shift from Supply A to Supply C.

Question 10

Today's supply curve for gasoline could shift in response to a change in

Accepted Answer

The supply curve for gasoline could shift in response to a change in the expected future price of gasoline. If suppliers expect the price of gasoline to go up in the future, they may reduce their current supply in order to sell at the higher price later on. This would shift the supply curve to the left. Other factors such as changes in technology, production costs, or government policies may also shift the supply curve. However, today's price of gasoline (A) and the number of buyers of gasoline (C) would not directly shift the supply curve.

Question 11

Figure 4-14 
-Refer to Figure 4-14. Which of the following best describes the movement from E1 to E2?

Accepted Answer

The movement from E1 to E2 represents a decrease in quantity supplied at each price level, indicating a decrease in supply.

Question 12

Funsters, Inc., the largest toy company in the country, sells its most popular doll for $15. It has just learned that its leading competitor, Toysorama, is mass-producing an excellent copy and plans to flood the market with their $5 doll in six weeks. Funsters should

Accepted Answer

The answer of Funsters, Inc., the largest toy company in...

Question 13

Figure 4-15 
-Refer to Figure 4-15. Which of the following would cause the supply curve to shift from Supply B to Supply A in the market for beer?

Accepted Answer

A decrease in the price of hops (an input in the production of beer) would lower the cost of production for firms, causing them to supply more beer at every price level. This would shift the supply curve from Supply B to Supply A, representing an increase in the quantity supplied at every price. A decrease in the price of beer (Option A) would actually result in a movement along the supply curve, not a shift. Options B and D would not have a direct impact on the supply of beer, as they relate to future price expectations and technological improvements, respectively.

Question 14

An increase in which of the following would shift the supply curve for gasoline to the right?

Accepted Answer

An increase in the number of producers of gasoline would increase the overall supply of gasoline, causing the supply curve to shift to the right. A change in demand or price of gasoline would only result in a movement along the supply curve. A change in the price of oil, an input into the production of gasoline, would affect the cost of production and therefore shift the supply curve, but it is unclear whether the price of oil would increase or decrease.

Question 15

Which of the following is a determinant of the market supply curve but not a determinant of an individual seller's supply?

Accepted Answer

The number of sellers affects the market supply curve as it represents the collective supply of all sellers in the market. However, it is not a determinant of an individual seller's supply as that depends on their own production decisions and costs. The other options, such as production technology, expectations, and input prices, can affect both the market supply and an individual seller's supply.

Question 16

Recent forest fires in the western states are expected to cause the price of lumber to rise in the next six months. As a result, we can expect the supply of lumber to

Accepted Answer

The question asks about the immediate impact of recent forest fires on the supply of lumber. Since forest fires have likely disrupted current lumber production and transportation, we can expect the supply of lumber to fall now. The question does not suggest that there will be an increase in demand in the short term, so options B and D are unlikely. A fall in supply may lead to a rise in price, as suggested in the question stem. Thus, the correct answer is C - fall now.

Question 17

Figure 4-16 
-Refer to Figure 4-16. The shift from S to S' is called a(n)

Accepted Answer

The shift from S to S' represents an increase in supply, meaning that at each price level, suppliers are willing and able to sell a greater quantity of the good. This is evidenced by the shift of the supply curve to the right. It is not a decrease in supply or quantity supplied, as these would result in a leftward shift of the supply curve.

Question 18

Which of the following events could cause an increase in the supply of ceiling fans?

Accepted Answer

An increase in the number of sellers of ceiling fans would cause an increase in the supply of ceiling fans. More sellers would mean more competition, which would lead to lower prices and an increase in the quantity supplied. The other options would cause a decrease in the supply of ceiling fans: B because consumers might switch to air conditioners instead of ceiling fans, and C because an increase in the price of the motor would increase the cost of producing ceiling fans, making it less profitable to supply them.

Question 19

If the number of sellers in a market increases, then the

Accepted Answer

If the number of sellers in a market increases, the supply in that market will increase. This is because there are now more producers offering goods or services for sale, which leads to an increase in the quantity of goods and services available in the market. The demand for these goods and services may or may not increase depending on various factors such as changes in consumer preferences, income levels, and availability of substitutes.

Question 20

Figure 4-16 
-Refer to Figure 4-16. The shift from S to S' could be caused by an

Accepted Answer

An improvement in production technology can cause a shift from S to S', as it would allow producers to produce more output at the same cost, thereby increasing the supply of the good. An increase in the price of the good (choice A) would cause a movement along the supply curve and not a shift, while an increase in income (choice C) would affect the demand for the good, not the supply. An increase in input prices (choice D) would decrease the supply of the good, causing a shift to the left of the supply curve, not a shift to S'.

Quiz 4: The Market Forces of Supply and Demand

A decrease in the number of sellers in the market causes

Figure 4-15 -Refer to Figure 4-15. Which of the following would cause the supply curve to shift from Supply A to Supply C in the market for sail boats?

A CPA recently has come to expect higher prices for expert tax advice in the near future. We would expect

Figure 4-14 -Refer to Figure 4-14. Which of the following would explain a movement from E1 to E2?

Today's supply curve for iPods could shift in response to a change in

Figure 4-15 -Refer to Figure 4-15. Which of the following would cause the supply curve to shift from Supply B to Supply A in the market for butter?

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

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

Figure 4-15 -Refer to Figure 4-15. Which of the following would cause the supply curve to shift from Supply A to Supply C in the market for beach towels?

Today's supply curve for gasoline could shift in response to a change in

Figure 4-14 -Refer to Figure 4-14. Which of the following best describes the movement from E1 to E2?

Funsters, Inc., the largest toy company in the country, sells its most popular doll for $15. It has just learned that its leading competitor, Toysorama, is mass-producing an excellent copy and plans to flood the market with their $5 doll in six weeks. Funsters should

Figure 4-15 -Refer to Figure 4-15. Which of the following would cause the supply curve to shift from Supply B to Supply A in the market for beer?

An increase in which of the following would shift the supply curve for gasoline to the right?

Which of the following is a determinant of the market supply curve but not a determinant of an individual seller's supply?

Recent forest fires in the western states are expected to cause the price of lumber to rise in the next six months. As a result, we can expect the supply of lumber to

Figure 4-16 -Refer to Figure 4-16. The shift from S to S' is called a(n)

Which of the following events could cause an increase in the supply of ceiling fans?

If the number of sellers in a market increases, then the

Figure 4-16 -Refer to Figure 4-16. The shift from S to S' could be caused by an