Microeconomics Chapter 3 SUPPLY

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

supply of televisions increase.

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

an increase in taxes on pipes

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

an increase in the number of sellers in the yogurt market

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

higher interest rates for new car financing

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.

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

a decrease in land taxes

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 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

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

fall because farmers will shift resources from beef production to pork production.

The law of supply states that, if prices:

fall, producers will offer fewer products to the market.

If sellers expect the price of their product 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 installations to _____.

right; fall

Ceteris paribus, an improvement in production technology:

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

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

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

the price rises

When the supply of citrus products decreases:

the whole supply curve shifts upward and to the left.