Question 1

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

Accepted Answer

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 2

The market supply curve

Accepted Answer

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 3

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

Accepted Answer

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 4

The quantity supplied of a good is the amount that

Accepted Answer

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.

Question 5

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

Accepted Answer

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

Question 6

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

Accepted Answer

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.

Question 7

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

Accepted Answer

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 8

"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

Accepted Answer

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 9

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

Accepted Answer

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 10

If the price of a good is low,

Accepted Answer

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 11

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

Accepted Answer

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

Question 12

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

Accepted Answer

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 13

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

Accepted Answer

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 14

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

Accepted Answer

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 15

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

Accepted Answer

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 16

When the price of a good or service changes,

Accepted Answer

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 17

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

Accepted Answer

A)  demand for gasoline
B)  price of gasoline
C)  number of producers of gasoline
D)  price of oil,an input into the production of gasoline

Question 18

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

Accepted Answer

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 19

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

Accepted Answer

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 20

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

Accepted Answer

A)  today's price of iPods.
B)  the expected future price of iPods.
C)  the number of buyers of iPods.
D)  All of the above are correct.

Exam 4: The Market Forces of Supply and Demand: Supply

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

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

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The market supply curve

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If the price of a good is low,

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The quantity supplied of a good is the amount that

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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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

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

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

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

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

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

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

Correct AnswerverifiedShow Answer

When the price of a good or service changes,

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

"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

Correct AnswerverifiedShow Answer

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