Question 1

Which of the following events would cause a movement downward and to the left along the supply curve for mangos?

Accepted Answer

A)  The number of sellers of mangos decreases.
B)  There is an advance in technology that reduces the cost of producing mangos.
C)  The price of mangos falls.
D)  The price of fertilizer increases,and fertilizer is an input in the production of mangos. C

Question 2

An decrease in the price of oranges would lead to a(n)

Accepted Answer

A)  increased supply of oranges.
B)  increase in the prices of inputs used in orange production.
C)  a movement down and to the left along the supply curve for oranges.
D)  a movement up and to the right along the supply curve for oranges.

Question 3

An improvement in production technology will

Accepted Answer

A)  increase a firm's costs and increase its supply.
B)  increase a firm's costs and decrease its supply.
C)  decrease a firm's costs and increase its supply.
D)  decrease a firm's costs and decrease its supply.

Question 4

Figure 4-12

-Refer to Figure 4-12.If these are the only two sellers in the market,then the market quantity supplied at a price of $6 is

Accepted Answer

A)  2 units.
B)  10 units.
C)  12 units.
D)  22 units.

Question 5

Which of the following demonstrates the law of supply?

Accepted Answer

A)  When leather became more expensive,belt producers decreased their supply of belts.
B)  When car production technology improved,car producers increased their supply of cars.
C)  When sweater producers expected sweater prices to rise in the near future,they decreased their current supply of sweaters.
D)  When ketchup prices rose,ketchup sellers increased their quantity supplied of ketchup.

Question 6

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

Accepted Answer

A)  an increased willingness and ability on the part of suppliers to supply the good at each possible price.
B)  an increase in the number of suppliers.
C)  a decrease in the price of a relevant input.
D)  an increase in the price of the good that is being supplied and the suppliers' responses to that price change.

Question 7

A decrease in the number of sellers in the market causes

Accepted Answer

A)  the supply curve to shift to the left.
B)  the supply curve to shift to the right.
C)  a movement up and to the right along a stationary supply curve.
D)  a movement downward and to the left along a stationary supply curve.

Question 8

A movement upward and to the right 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 9

Ashley bakes bread that she sells at the local farmer's market.If she purchases a new convection oven that reduces the costs of baking bread,the

Accepted Answer

A)  supply curve for Ashley's bread will increase.
B)  supply curve for Ashley's bread will decrease.
C)  demand curve for Ashley's bread will increase.
D)  demand curve for Ashley's bread will decrease.

Question 10

Figure 4-12

-Refer to Figure 4-12.If these are the only two sellers in the market,then the market quantity supplied at a price of $8 is

Accepted Answer

A)  14 units.
B)  15 units.
C)  16 units.
D)  29 units.

Question 11

Suppose an increase in the price of rubber coincides with an advance in the technology of tire production.As a result of these two events,the demand for tires

Accepted Answer

A)  decreases,and the supply of tires increases.
B)  is unaffected,and the supply of tires decreases.
C)  is unaffected,and the supply of tires increases.
D)  None of the above is necessarily correct.

Question 12

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

Accepted Answer

A)  The number of sellers of ceiling fans increases.
B)  There is an increase in the price of air conditioners,and consumers regard air conditioners and ceiling fans as substitutes.
C)  There is an increase in the price of the motor that powers ceiling fans.
D)  All of the above are correct. A

Question 13

Lead is an important input in the production of crystal.If the price of lead decreases,then we would expect the supply of

Accepted Answer

A)  crystal to be unaffected.
B)  crystal to decrease.
C)  crystal to increase.
D)  lead to increase.

Question 14

A supply schedule is a table that shows the relationship between

Accepted Answer

A)  price and quantity supplied.
B)  input costs and quantity supplied.
C)  quantity demanded and quantity supplied.
D)  profit and quantity supplied.

Question 15

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

Accepted Answer

A)  demand in that market will increase.
B)  supply in that market will increase.
C)  supply in that market will decrease.
D)  demand in that market will decrease.

Question 16

The supply curve for a good is a line that relates

Accepted Answer

A)  profit and quantity supplied.
B)  quantity supplied and quantity demanded.
C)  price and quantity supplied.
D)  price and profit.

Question 17

Once the supply curve for a product or service is drawn,it

Accepted Answer

A)  remains stable over time.
B)  can shift either rightward or leftward.
C)  is possible to move along the curve,but the curve will not shift.
D)  tends to become steeper over time.

Question 18

The line that relates the price of a good and the quantity supplied of that good is called the supply

Accepted Answer

A)  schedule,and it usually slopes upward.
B)  schedule,and it usually slopes downward.
C)  curve,and it usually slopes upward.
D)  curve,and it usually slopes downward. C

Question 19

An increase in the price of a good would

Accepted Answer

A)  increase the supply of the good.
B)  increase the amount purchased by buyers.
C)  give producers an incentive to produce more.
D)  decrease both the quantity demanded of the good and the quantity supplied of the good.

Question 20

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)  an increase in the price of sailboats
B)  a decrease in the number of firms selling sailboats
C)  a decrease in the price of fiberglass and sail cloth
D)  a decrease in the price of America's Cup sailing t-shirts

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

Which of the following events would cause a movement downward and to the left along the supply curve for mangos?

Correct AnswerverifiedC

An decrease in the price of oranges would lead to a(n)

Correct AnswerverifiedShow Answer

An improvement in production technology will

Correct AnswerverifiedShow Answer

Figure 4-12 -Refer to Figure 4-12.If these are the only two sellers in the market,then the market quantity supplied at a price of $6 is

Correct AnswerverifiedShow Answer

Which of the following demonstrates the law of supply?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A decrease in the number of sellers in the market causes

Correct AnswerverifiedShow Answer

A movement upward and to the right along a supply curve is called a(n)

Correct AnswerverifiedShow Answer

Ashley bakes bread that she sells at the local farmer's market.If she purchases a new convection oven that reduces the costs of baking bread,the

Correct AnswerverifiedShow Answer

Figure 4-12 -Refer to Figure 4-12.If these are the only two sellers in the market,then the market quantity supplied at a price of $8 is

Correct AnswerverifiedShow Answer

Suppose an increase in the price of rubber coincides with an advance in the technology of tire production.As a result of these two events,the demand for tires

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedA

Lead is an important input in the production of crystal.If the price of lead decreases,then we would expect the supply of

Correct AnswerverifiedShow Answer

A supply schedule is a table that shows the relationship between

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The supply curve for a good is a line that relates

Correct AnswerverifiedShow Answer

Once the supply curve for a product or service is drawn,it

Correct AnswerverifiedShow Answer

The line that relates the price of a good and the quantity supplied of that good is called the supply

Correct AnswerverifiedC

An increase in the price of a good would

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

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C

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A

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C

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