Question 1

Which of the following will not cause an increase in the supply of cornflakes in the short run?
A.an increase in the price of cornflakes
B.a cost-saving improvement in the technology of corn production
C.a reduction in the price of corn
D.the expectation by producers that the price of cornflakes will fall in the future

Accepted Answer

The answer of Which of the following will not cause...

Question 2

Consider the supply curve for cotton shirts.An increase in the price of cotton will:

Accepted Answer

An increase in the price of cotton, an input in the production of cotton shirts, will result in an increase in the cost of producing cotton shirts. This will reduce the profit margins for producers, leading to a decrease in the supply of cotton shirts. An increase in the price of cotton will increase the cost of production for cotton shirts, leading to a decrease in profit margins for producers. As a result, producers will decrease the quantity of cotton shirts they supply, causing a leftward shift in the supply curve and a decrease in supply.

Question 3

A decrease in supply is caused by:
A.an increase in the price of goods that are used in production.
B.suppliers' expectations of lower prices in the future.
C.an advancement in the technology for producing the good.
D.an increase in the number of producers.

Accepted Answer

An increase in the price of goods that are used in production will increase the cost of production for the suppliers, making it less profitable to produce the good. As a result, suppliers may decrease their supply.

Question 4

An increase in supply of a good is caused by:
A.input prices rising.
B.a fall in the price of the good.
C.an increase in the number of sellers.
D.expectations of future price increases.

Accepted Answer

The answer of An increase in supply of a good...

Question 5

A decrease in supply is caused by:
A.a decrease in input prices.
B.an increase in the number of sellers in the market.
C.suppliers' expectations of higher prices in the future.
D.an advancement in the technology for producing the good.

Accepted Answer

The answer of A decrease in supply is caused by:
A.a...

Question 6

(Table: Supply of Lemonade) Look at the table Supply of Lemonade.When the price of lemonade is $1 per cup, the quantity of lemonade supplied by Eli will be:
A.40 cups.
B.90 cups.
C.10 cups.
D.25 cups.

Accepted Answer

The answer of (Table: Supply of Lemonade) Look at the...

Question 7

If the price of mozzarella cheese (an ingredient in pizza) declines, there would be:

Accepted Answer

A decrease in the price of mozzarella cheese, an ingredient in pizza, would lead to a decrease in the cost of producing pizza. This, in turn, would increase the profitability of producing pizza, leading to an increase in the supply of pizza. Therefore, the correct answer is an increase in the supply of pizza.

Question 8

In the market for wheat, what would happen if the price of ethanol (which is made from corn) increases dramatically?
A.an increase in supply of wheat
B.a decrease in supply of wheat
C.an increase in demand for
D.wheat a decrease in demand for wheat

Accepted Answer

The answer of In the market for wheat, what would...

Question 9

Market equilibrium occurs when:
A.there is no incentive for prices to change in the market.
B.quantity demanded equals quantity supplied.
C.the market clears.
D.there is no incentive for prices to change in the market, quantity demanded equals quantity supplied, and the market clears.

Accepted Answer

Market equilibrium occurs when there is no incentive for prices to change in the market, quantity demanded equals quantity supplied, and the market clears. In other words, supply and demand are in balance, and there is no excess supply (surplus) or excess demand (shortage) in the market. At this point, prices are stable and there is no pressure for prices to go up or down.

Question 10

(Table: Supply of Lemonade) Look at the table Supply of Lemonade.If the price of lemonade is
$1 per cup, the total quantity of lemonade supplied will be:
A.50 cups.
B.80 cups.
C.25 cups.
D.90 cups.

Accepted Answer

The answer of (Table: Supply of Lemonade) Look at the...

Question 11

An increase in supply is caused by:
A.an increase in input prices.
B.a decrease in the number of sellers in the market.
C.suppliers' expectations of higher prices in the future.
D.an advancement in the technology for producing the good.

Accepted Answer

An increase in supply is caused by an advancement in the technology for producing the good, which allows for greater efficiency and lower production costs. A decrease in the number of sellers in the market, an increase in input prices, or supplier expectations of higher prices in the future would all lead to a decrease in supply.

Question 12

Excess supply occurs when:
A.the price is above the equilibrium price.
B.the quantity demanded exceeds the quantity supplied.
C.the price is below the equilibrium price.
D.the quantity demanded exceeds the quantity supplied and when the price is below the equilibrium price.

Accepted Answer

The answer of Excess supply occurs when:
A.the price is above...

Question 13

Which of the following would not cause the supply curve to shift?

Accepted Answer

A change in the price of the good will cause a movement along the supply curve, but it will not cause the entire curve to shift. A change in technology, factor costs, or suppliers' expectations of future prices will shift the supply curve.

Question 14

Which of the following is most likely to shift the supply of milk to the right?

Accepted Answer

A decrease in the price of feed given to dairy cows would reduce the cost of production for dairy farmers, which would encourage them to produce more milk at any given price. This would result in a rightward shift in the supply of milk. The other options would likely shift the supply of milk to the left.

Question 15

A shift to the left of a supply curve is caused by:

Accepted Answer

An increase in the cost of an input will increase the cost of production for suppliers, resulting in a decrease in supply and a shift to the left of the supply curve. Choices A, B, and D all relate to factors that could increase supply and shift the curve to the right.

Question 16

A technological advance in the production of automobiles will:

Accepted Answer

Technological advances in the production of automobiles typically increase the efficiency of production, allowing for more automobiles to be produced at lower costs. This leads to an increase in the supply of automobiles, as producers are able to offer more units for sale at a given price. However, it does not necessarily affect the demand for automobiles.

Question 17

An increase in supply is caused by:
A.an increase in input prices.
B.suppliers' expectations of higher prices in the future.
C.an increase in the price of the good.
D.a decrease in the price of goods that are used in production.

Accepted Answer

The answer of An increase in supply is caused by:
A.an...

Question 18

The market equilibrium is found at the:
A.price where quantity demanded exceeds quantity supplied.
B.price where quantity demanded equals quantity supplied.
C.price where quantity supplied exceeds quantity demanded.highest price the market will bear.

Accepted Answer

The answer of The market equilibrium is found at the:
A.price...

Question 19

Over the past few years, the technology associated with producing flat-panel televisions has improved.This has led to ________ in flat-panel televisions.
A.an increase; the supply of
B.an increase; the demand for
C.a decrease; the supply of
D.a decrease; the quantity supplied of

Accepted Answer

The answer of Over the past few years, the technology...

Question 20

Suppose the equilibrium price of good Y is $5 and the equilibrium quantity is 150 units.If the price of good Y is $12:
A.the quantity demanded will be greater than 150 units.
B.the quantity supplied will be less than 150 units.
C.there will be an excess demand for good Y.
D.there will be an excess supply of good Y.

Accepted Answer

At the new price of $12, the quantity supplied of good Y will increase as it has become more profitable for suppliers to produce and sell this good. However, the quantity demanded of good Y will decrease as the higher price makes it less attractive for consumers. This creates a surplus or excess supply of good Y as the quantity supplied will be greater than the quantity demanded.

Quiz 3: Supply and Demand

Consider the supply curve for cotton shirts.An increase in the price of cotton will:

A decrease in supply is caused by: A.an increase in the price of goods that are used in production. B.suppliers' expectations of lower prices in the future. C.an advancement in the technology for producing the good. D.an increase in the number of producers.

An increase in supply of a good is caused by: A.input prices rising. B.a fall in the price of the good. C.an increase in the number of sellers. D.expectations of future price increases.

A decrease in supply is caused by: A.a decrease in input prices. B.an increase in the number of sellers in the market. C.suppliers' expectations of higher prices in the future. D.an advancement in the technology for producing the good.

(Table: Supply of Lemonade) Look at the table Supply of Lemonade.When the price of lemonade is $1 per cup, the quantity of lemonade supplied by Eli will be: A.40 cups. B.90 cups. C.10 cups. D.25 cups.

If the price of mozzarella cheese (an ingredient in pizza) declines, there would be:

In the market for wheat, what would happen if the price of ethanol (which is made from corn) increases dramatically? A.an increase in supply of wheat B.a decrease in supply of wheat C.an increase in demand for D.wheat a decrease in demand for wheat

Market equilibrium occurs when: A.there is no incentive for prices to change in the market. B.quantity demanded equals quantity supplied. C.the market clears. D.there is no incentive for prices to change in the market, quantity demanded equals quantity supplied, and the market clears.

(Table: Supply of Lemonade) Look at the table Supply of Lemonade.If the price of lemonade is $1 per cup, the total quantity of lemonade supplied will be: A.50 cups. B.80 cups. C.25 cups. D.90 cups.

An increase in supply is caused by: A.an increase in input prices. B.a decrease in the number of sellers in the market. C.suppliers' expectations of higher prices in the future. D.an advancement in the technology for producing the good.

Excess supply occurs when: A.the price is above the equilibrium price. B.the quantity demanded exceeds the quantity supplied. C.the price is below the equilibrium price. D.the quantity demanded exceeds the quantity supplied and when the price is below the equilibrium price.

Which of the following would not cause the supply curve to shift?

Which of the following is most likely to shift the supply of milk to the right?

A shift to the left of a supply curve is caused by:

A technological advance in the production of automobiles will:

An increase in supply is caused by: A.an increase in input prices. B.suppliers' expectations of higher prices in the future. C.an increase in the price of the good. D.a decrease in the price of goods that are used in production.

The market equilibrium is found at the: A.price where quantity demanded exceeds quantity supplied. B.price where quantity demanded equals quantity supplied. C.price where quantity supplied exceeds quantity demanded.highest price the market will bear.

Over the past few years, the technology associated with producing flat-panel televisions has improved.This has led to ________ in flat-panel televisions. A.an increase; the supply of B.an increase; the demand for C.a decrease; the supply of D.a decrease; the quantity supplied of