Chapter 5
Quantity supplied changes because of...
a change in price
A supply curve is a reflection of...
what suppliers are willing and able to produce
A vertical supply curve indicates that...
a change in price will have no effect on the quantity supplied
The law of supply is shown on a graph as...
a direct relationship
The supply curve of Pablo Picasso's (1881-1973) paintings would be shown as...
a vertical line
Which of the following can cause a supply curve shift? a. weather b. future price expectations c. number of sellers d. all of the above
d. all of the above
A supply schedule includes... a. price and quantity supplied at each price b. the producer's cost c. shifts to the left or right of the supply curve d. both a and b
d. both a and b
If you are a baker who specializes in bagels, and the price of flour falls, which of the following scenarios is most likely? a. you would be willing and able to produce fewer bagels than before b. buyers would have greater demand for your bagels c. buyers would have less demand for your bagels d. you would be willing and able to produce more bagels than before
d. you would be willing and able to produce more bagels than before
Elasticity of supply is measured by looking at the relationships between...
how much the quantity supplied responds to changes in price of the good
When additional units cannot be produced or there is no time to produce more, the supply curve...
is vertical
A direct relationship exists when...
price and quantity supplied move in the same direction
Higher per-unit production costs would cause producers to...
supply less
Quantity supplied refers to...
the amount supplied at a particular price
The law of supply says that...
the quantity supplied of a good rises when the price of the good rises
A market supply curve is composed of...
the sum of all firms' supply curves
The word supply refers to...
the willingness and ability to produce a good
When quantity supplied changes by the same percentage as price, it is...
unit-elastic
