ECON_2023 Supply

When a nonprice determinant of supply changes:

the entire supply relationship changes.

A tax is a payment made to:

the government that is the result of economic activity.

A change in supply:

does not have to be a parallel shift.

When we say in economics that there is an increase in supply, we mean that the supply curve:

shifts to the right.

Taxes and subsidies matter because they:

-Stimulate production or collect revenue. -Have unanticipated effects on other markets.

Which of the following likely affects the demand curve?

Taxes and subsides placed on consumers.

Which of the following likely affects the supply curve?

Taxes and subsidies placed on producers.

A small nation produces coffee and chickens. What is one possible reason the opportunity cost of producing chickens will increase relative to coffee?

The cost of producing coffee has decreased.

Seller expectations are:

the anticipated future outcomes that sellers associate with the production of a good, service, or resource.

Resources

the inputs used to produce goods and services; also known as factors of production.

Technology refers to:

the knowledge, inventions, and innovations that can potentially increase resource productivity

Technology

the knowledge, inventions, and innovations that can potentially increase resource productivity.

Which of the following would shift the supply curve for guitars?

A tax is implemented on guitars

Which of the following events would increase the cost of production?

A tax is placed on the market.

The supply curve will shift to the right or left when:

a non-price determinant of supply changes.

When producers expect lower future prices, current supply shifts to the

right

Subsidies most often take the form of payments to businesses by governments.

true

Market supply is the:

sum of individual supply curves added together.

Better technology can:

-Result in an increase in supply in the market. -Significantly decrease the cost of producing a good.

The size of the producer tax determines the:

-size of the supply shift.

Change (shift) in supply

A change in the quantity of a good, service, or resource supplied at every price. Graphically, an increase in supply is represented by a rightward shift of the supply curve, while a decrease in supply is represented by a leftward shift of the supply curve.

An increase in the cost of a resource will have what effect on the market?

A decrease in supply

What is the effect of a subsidy being placed on the market?

A decrease in the cost of production

Which of the following events will shift the supply curve for cheese to the right?

A decrease in the price of milk, a resource used to produce cheese

When a nonprice determinant of supply changes what will be the effect on the market?

A shift in the supply curve at all possible prices

A new technology increases the production of widgets by 25% at all possible prices. Which of the following statements offers the best description of the location of the new supply curve, relative to the original curve?

A shift to the right with a greater increase occurring at higher price levels.

On the supply side of the market, when the price of a good increases, the quantity supplied of the good _____.

Increases

Why is the supply curve upward-sloping?

Producing significantly more of a product involves increased costs so the price of the good must rise for sellers to be willing and able to increase the quantity of the good they supply to the market.

How is a supply curve plotted?

Quantity supplied is on the horizontal axis and price of the good is on the vertical axis.

Taxes and ____ alter the costs or benefits of producing goods and services.

Subsidy

Which of the following reflects a way of expressing information about the amount of coffee cups producers are willing and able to produce?

Supply curve Supply schedule

The price of paper, an input in the production of books, decreases. How will this affect the market for books?

Supply of books will increase.

Firms expecting a cold winter will anticipate an increased demand for scarves resulting in an increased future price. How will the market adjust today?

Supply will decrease at every possible price.

seller expectations

The anticipated future outcomes, including prices, that sellers associate with the production of a good, service, or resource.

Which principle states that as the price of a good increases the quantity supplied will increase?

The law of supply

A technological improvement reduces the cost of harvesting almonds. How will this event affect the market for almonds?

The supply of almonds increases

Producers expect the price of lumber to increase next month. How will producers respond today?

The supply of lumber will decrease at every price.

Supply - supply curve - and supply schedule are:

The three different ways of expressing information about the supply of a good, service, or resource.

Which of the following are examples of resources?

Workers hired to pick grapes at a vineyard. An oven used to bake bread at a bakery.

All the following can shift the supply curve except:

a change in income.

The quantity of a good supplied to the market is affected by:

a change in the price of a good.

movement along the supply curve

a change in the quantity of a good, service, or resource supplied due to a change in its price. Graphically, this change is represented as a movement along an existing supply curve

In economics, a downward-sloping or upward-straight line is often called:

a curve.

When less output is being produced at every price, we say there is:

a decrease in supply.

Suppose a manufacturer produces soccer balls and footballs. If the cost of producing a soccer ball decreases, the opportunity cost of producing:

a football will increase.

Supple Curve

a graphical representation of the relationship between the price of a good, service, or resource and the quantities producers are willing and able to supply over a fixed time period, all else held constant.

A shift in the supply curve at every price is the result of a change in:

a nonprice determinant of supply.

Subsidy

a payment made by the government that does not necessarily require an exchange of economic activity in return. Most often take the form of payments to businesses

Tax

a payment made to the government that is the result of economic activity. Generally collected from both individuals and firms.

Supply Schedule

a tabular representation of the relationship between the price of a good, service, or resource and the quantities producers are willing and able to supple over a fixed time period, all else held constant.

An increase in the quantity of a good - service - or resource supplied at every price is:

an increase in supply.

The prices of skis are expected to decline in the future. There is likely to be:

an increase in the supply of skis now.

Law of Supply

as the price of a good, service, or resource rises, the quantity supplied will increase, and vice versa, all else held constant.

The taxes and subsidies that are under consideration in analyzing supply apply to

businesses

The taxes and subsidies that are under consideration in analyzing supply are applied to:

businesses.

Resources (such as land) and technology (such as the ability to draw water from a well):

contribute to how a good or service is produced for the market.

There is a technological improvement in the process for harvesting oranges. As a result, the cost of producing oranges will:

decrease and supply will increase.

Taxes and subsidies that are placed on consumers are likely to shift the ____ curve because they affect the willingness and ability of individuals to purchase products

demand

If consumers believe that prices will decrease in the future,:

demand decreases today.

Consumer expectations influence the ____ curve, and producer expectations influence the ____ curve.

demand; supply

The supply curve shifts in response to changes in non-price ___ of supply.

determinant

According to a popular statement in economics, "if not for _______________, we should be able to grow the world's food supply in a flower pot".

diminishing marginal productivity

If a fitness center owner decides to hire additional employees but does not change the size of the fitness center or the amount of capital available to its employees to perform their tasks, the fitness center will likely experience:

diminishing marginal productivity.

The principle that if at least one input of production is fixed, the marginal productivity of additional variable resources will eventually fall, all else held constant, is known as:

diminishing marginal productivity.

The price of a good and the quantity supplied are:

directly related.

When producers expect higher future prices, current supply shifts to the

left

The supply curve is a(n) ____ representation of the information found in the supply schedule.

graphical

A change in supply:

has the effect of shifting the entire supply curve to the right or left. occurs when a nonprice determinant of supply changes.

The law of supply tells us that:

higher prices of goods result in higher quantities of goods being supplied

Market supply is the _____ summation of the quantities supplied by individuals - firms - states - or even nations at each price over a fixed time period.

horizontal

According to the principle of diminishing marginal productivity:

if at least one input of production is fixed, the marginal productivity of additional variable resources will eventually fall, all else held constant.

Diminishing Marginal Productivity

if at least one input of production is fixed, the marginal productivity of additional variable resources will eventually fall, all else held constant.

According to the the law of supply, if the price of apple juice rises, producers of apple juice will be willing and able to:

increase the quantity of apple juice they supply to the market.

A tax on producers ___ the cost of producing.

increases

On the supply side of the market, when the price of a good increases, the quantity supplied of the good

increases

According to the law of supply, as price ________, quantity supplied ________.

increases; increases

Increasing the quantity of wheat supplied requires that farmers incur increasing costs for water, fertilizer, and other resources, thus ____ the opportunity cost of growing wheat.

increasing

Taxes are generally collected from:

individuals and firms

A subsidy:

is a benefit given by the government to individuals or businesses.

When the supply curve shifts to the left,:

it is called a decrease in supply. lower quantities of a good, service, or resource are produced at all prices.

When the supply curve shifts to the left,:

lower quantities of a good, service, or resource are produced at all prices. it is called a decrease in supply.

A subsidy to producers:

lowers the cost of producing

The sum of individual supply curves added together reflect the ___ supply curve.

market

Sellers

market participants who are willing and able to sell goods, services, or resources

Sellers are:

market participants who are willing and able to sell goods, services, or resources

The overall - or total - supply of a good - service - or resource is the:

market supply.

The sum of individual supply curves added together reflect the:

market supply.

The total quantity all producers are willing and able to produce at every price is known as:

market supply.

If manufacturing technology improves,:

more manufactured products will be supplied

When we say in economics that there is an increase in supply, we mean that:

more output is being supplied at every price, all else held constant.

Shifts in supply:

occur when there is a change in the nonprice determinants of supply. can be parallel.

Firms will be willing and able to produce more output only when prices rise because the:

opportunity cost of production is increasing.

All else equal, a change in ___ the of a good, service, or resource changes the quantity supplied of the good, service, or resource.

price

The supply curve focuses entirely on the ___ of the product and holds everything else constant

price

The supply curve focuses entirely on the changes in the ___ of the product and holds everything else constant.

price

Companies will be willing and able to produce additional units of a good only if the:

price of the good increases enough to cover the increasing costs.

A movement along the supply curve is the result of a change in _______ , while a shift in the supply curve is the result of a change in ________.

price; non-price determinants

When drawing a supply curve, we always place ____ on the vertical axis and _____ supplied on the horizontal axis

price; quantity

At a firm's level, higher expected prices can increase the current ____ while decreasing the current _____ to the market.

production; supply

Any change in technology and the availability and the quality of resources are likely to affect the ____ that producers are willing and able to supply to the market at every price.

quantity

When we talk about the supply of a good - we are referring to the:

quantity of the good producers are willing and able to supply at a variety of different prices over a fixed time period - all else held constant.

a change in price, all else held constant, generates a change in ___

quantity supplied

The law of supply states as the price of a good decreases the:

quantity supplied will decrease.

Another term for the factors of production used to produce goods and services is:

resources.

The supply curve in the current period will shift to the:

right when producers expect lower prices in the future.

The supply _____ displays the supply in a table showing the different prices and their corresponding quantities supplied.

schedule

The anticipated future outcomes, including prices, that sellers associate with the production of a good, service, or resource are expectations of the:

seller.

Market participants who are willing and able to sell goods, services, or resources are known as:

sellers.

An increase in tax rates on consumers is likely to:

shift the demand curve.

Taxes and subsidies that are placed on businesses are likely to:

shift the supply curve.

decrease in supply

shift to the left

increase in supply

shift to the right

The size of the producer subsidy will influence the:

size of the shift in supply.

To simplify analysis in economics, supply curves are often drawn as:

sloping lines.

A change in taxes and subsidies on producers alters market

supply

A graphical representation of the relationship between the price of a good, service, or resource and the quantities producers are willing and able to supply is known as the ____ curve.

supply

A tabular representation of the relationship between the price of a good, service, or resource and the quantities producers are willing and able to supply is the ____ schedule.

supply

Taxes and subsidies that are placed on businesses are likely to shift the ____ curve.

supply

The law that states that as the price of a good, service, or resource rises, the quantity supplied will increase, all else held constant, is the law of

supply

The size of the producer subsidy will influence the size of the shift in

supply

The size of the producer tax will influence the size of the shift in

supply

____ refers to the quantity of output firms are willing and able to provide to the market at different prices, all else held constant.

supply

A graphical representation of the relationship between the price of a good, service, or resource and the quantities producers are willing and able to supply is the:

supply curve

When you plot the data points from the supply schedule, you create the:

supply curve.

When the number of sellers increases,:

supply increases

When the number of sellers increases:

supply increases

Suppose once students return to campus after the summer they discover three new pizza places. Based on this information, we can conclude that the:

supply of pizzas will increase.

The supply schedule displays the:

supply of the good in a table showing the different prices and their corresponding quantities supplied.

The _____ displays the relationship between quantity and price supplied supply in a table.

supply schedule

A tabular representation of the relationship between the price of a good, service, or resource and the quantities producers are willing and able to supply is known as the:

supply schedule.

The supply schedule displays the supply in a(n) form, showing the different prices and their corresponding quantities supplied.

tabe

The knowledge, inventions, and innovations that can potentially increase resource productivity are known as:

technology.

If the production of a good incurs at a lower cost,:

the opportunity cost (in terms of other goods that could have been produced) has decreased. the opportunity cost of producing other goods (in terms of the amount of this good that could have been produced) has increased.

Market Supply

the overall, or total, supply of a good service, or resource. It represents the horizontal summation of the quantities supplied by individuals, firms, states, or even nations at each price over a fixed time period, all else held constant.

Quantity supplied

the quantity of a good, service, or resource that producers are willing and able to supply at a given price.

The price of sugar increases. The law of supply states:

the quantity of sugar supplied will increase.

A change in the price of a good will affect:

the quantity of that good supplied to the market.

There is an increase in the supply of pumpkins. This event can be seen graphically as:

the supply curve shifts to the right.

In a market, when the price or availability of resources used in the production of a certain good changes,:

the supply curve shifts.

In September, heating-oil producers anticipate a brutally cold winter and higher prices of heating oil by the end of November. We can expect that:

the supply of heating oil will fall now.

A decrease in the supply of cellphones implies:

there is a decrease in the quantity of cellphones supplied at each price.