10 questions
A decrease in the price of a good will
Increase supply
Decrease supply
Increase quantity supplied
Decrease quantity supplied
What happens to a supply curve when supply goes down?
Moves left
Moves right
Moves up
Moves down
When there is a shortage the price will usually?
Fall
Rise
Remain the same
Become an equilibrium
Which of the following would not shift the supply curve for iPhones?
An increase in the price iPhones
A decrease in the number of sellers of iPhones
An increase in the price of plastic, an input into the production of iPhones
An improvement in the technology used to produce iPhones
New technology advances the rate at which furniture can be assembled. Why does this change the supply?
Changes in numbers of producers
Changes in expectations
Change in cost of production
How does an increase in taxes affect production or supply?
Creates more supply
Creates less supply
Creates variable supply
Does not affect the supply
Which of the following is NOT a determinant of the supply of peanut butter?
The price of peanuts
The wages of peanut butter factory workers
The income of peanut butter consumers
Existing peanut butter making technology
The cost of producing petrol has increased due to rising energy costs. What happens to the market for petrol?
Supply for petrol will decrease
Supply for petrol will increase
Supply petrol will stay the same
A cause, or determinant, of the change seen in the graph above would be:
Taxes on steel make it more expensive to produce
An increase in price led to an increase in quantity supplied
Sellers expect prices to go down in the future
Government regulations increase the cost of production
Why does quantity supplied increase as price rises?
Existing firms produce more AND new firms enter the market
Existing firms produce less AND firm exit the market
The supply curve shifts to the left
Existing firms produce less AND new firms enter the market