Micro Chapter 3 Supply Launchpad Questions

Which event would shift the supply curve for corn to the right?

a decrease in land taxes

Subsidies on domestically produced sport utility vehicles cause a(n) _____ in the supply of _____ sport utility vehicles

increase; domestic

The price of automobiles is rising because more people want to purchase cars. As a result,

quantity supplied increases

If sellers expect the price of their products to rise in the future, they are likely to:

restrict their supply in the near term

The development of solar panels for home installation has improved due to technological advances and subsidies. These factors shift the supply curve to the ______ and result in the equilibrium price of solar panel installation to _____

right; fall

The law of supply states that as prices _____, the quantity _____

rise; supplied rises

which of these circumstances would NOT affect the supply of new automobiles?

higher interest rates for new car financing

A shift to the right of the supply curve could be caused by a(n):

improvement in production technology

If the price of used plug-in electric cars is expected to rise in six months, the reaction in the supply of those cars in the market today would likely be a(n):

shift of the supply curve to the left

According to the law of supply, producers will supply more of their products when:

the price rises

Electricity is essential in the production of aluminum. If electricity prices increase:

the supply curve for aluminum shifts leftward

Ceteris paribus, an improvement in production technology:

shifts the supply curve to the right, reducing the equilibrium price and increasing the equilibrium output

Which event will cause an increase in the supply of yogurt?

an increase in the number of sellers in the yogurt market

Which event will NOT cause the supply curve for kayaks to shift to the left?

a decrease in the price of a kayak

Which circumstance would increase the supply of pork sausage?

a decrease in the price of ingredients used to produce sausage

Which event will NOT lead to a decrease in supply?

a decrease in the product price

Which factor would shift the supply of skateboards to the right?

a large reduction in the price of wheels used to produce skateboards

Which event would shift the supply curve for gasoline to the right?

a technological innovation in the oil-drilling industry that dramatically lowers the cost of exploration

Which circumstance will NOT decrease the supply of commercial air travel?

a technology change that makes aircrafts more fuel efficient

Which event would shift the supply curve for pipes to the left?

an increase in taxes on pipes

Suppose that the price of pork rises. We would expect that the supply of beef will:

fall because farmers will shift resources from beed production to pork production

The law of supply states that, if prices:

fall, producers will offer fewer products to the market

The fundamental reason why supply curves slope upward is:

increasing costs

A leather company produces shoes and belts. What will the company do if it expects the price of shoes to rise in the near future?

it will move resources from belt production to shoe production, thereby decreasing the supply of belts

Which item is NOT a determinant of supply?

national income

Suppose that a major drought causes a 30 percent reduction in the peanut harvest. If there is no change in demand, this event would cause a ____ at the original equilibrium price, and the equilibrium price will therefore _____ and the equilibrium quantity will ______

shortage; rise; fall

From supply curve 1, supply curve 2 shifts right, this might be caused by an increase in:

subsidies

Wheat is the main input in the production of flour. If the price of wheat increases, all else equal, we would expect the:

supply of flour to decrease

If television sellers expect the prices of televisions to fall in the future, we are likely to see the:

supply of televisions increase

An increase in the cost of coffee beans that are used to make coffee will cause the ____ for coffee to shift _____

supply; left

One of the most important ingredients in bubble tea is the tapioca pearls that are added to the tea. If the price of tapioca flour increases, what will happen to the supply of bubble tea, all else being equal?

the supply of bubble tea will decrease

When the supply of citrus products decreases:

the whole supply curve shifts upward and to the left