Supply - Econ 2302

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

Increases

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

Increasing

According to the law of _____, producing significantly more of a product than current levels will come at a higher cost, 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.

Increasing opportunity costs

When less of a good, service, or resource is supplied at every price, there is a:

Leftward shift of the supply curve.

A subsidy to producers:

Lowers the cost of producing.

Sellers are:

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

Sellers:

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

The horizontal summation of the quantities supplied by individuals, firms, states, or even nations at each price over a fixed time period represents the:

Market supply

If manufacturing technology improves:

More manufactured products will be supplied.

The supply curve changes in response to:

Nonprice determinants

Shifts in supply can be:

Parallel and nonparallel.

The supply curve focuses entirely on 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.

____ refers to the quantity of output firms produce.

Production

Any change in the availability an quality of resources and technology will likely affect the:

Quality producers are willing and able to supply to the market at every price.

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

Quantity of a good producers re willing and able to supply at a variety of different rices over a fixed time period, all else held constant.

A change in price, all else held constant, generates change in:

Quantity supplied.

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

Schedule

Taxes and subsides that are placed on consumers are likely to:

Shift the demand curve

Taxes and subsides that are placed on consumers are likely to:

Shift the demand curve.

An increase in supply is a:

Shift to the right.

The size of the supply shift is determined by the:

Size of the producer subsidy.

The size of the supply shift is determined by the:

Size of the producer tax.

The size of the producer subsidy will influence the:

Size of the shift in supply.

The size of the producer tax determines the:

Size of the supply shift.

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

Straight lines.

A _____ to producers lowers the cost of producing.

Subsidy

A payment made by the government that does not necessarily require an exchange of economic activity in return is a _____.

Subsidy

Market supply is the:

Sum of individual supply curves added together.

Market supply is:

Sum of individuals supply curves added together.

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

Supplier

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

Resources are:

- Factors and production - Inputs used to produce goods and services - Land, labor, capital, and entrepreneurial ability

Taxes and subsidies matter, because they:

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

A change in supply:

- Occurs when a nonprice determinant of supply changes - Has effect of shifting the entire supply curve to the right or left.

A chang in supply:

- Occurs when a nonprice determinant of supply changes. - Has the effect of shifting the entire supply curve to the right or left.

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

- Supply - Supply schedule - Supply curve

Payments (subsides) or changes (taxes) initially affect the:

- Supply of output in the marketplace. - Quantity traded and the market price of goods and services.

The factors that cause a shift in the supply curve include:

- Technology - The number of sellers - Resource costs and availability - Expectations about market conditions

The supply curve will shift to the right if:

- The number of sellers increases - Producers expect lower future prices

If production of a good involves a lower cost:

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

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.

In economics, a straight line is often called:

A curve.

Decrease in Supply

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

Law of Supply

A law In economics that states as the price of a good, service, or resource rises, the quantity supplied will increase, and vice versa, all else held constant.

Subsidy

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

Tax

A payment made to government that is the result of economic activity. Taxes are generally collected from both individuals and firms.

When more of a good, service, or resource is supplied at every price, there is:

A rightward shift on the supply curve.

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

An increase in supply.

Increase in Supply

An increase 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.

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

Businesses

Taxes and subsides that are place on ____ are likely to shift the demand curve.

Consumers

Taxes and subsides that are placed on _____ are likely to shift the demand curve.

Consumers

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.

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

Curve

The supply ______ displays in a graph the information found in the supply schedule.

Curve

Suppose a drought hits Idaho, resulting in a sharp increase in the price of water, which is a resource used for growing potatoes. his would cause the supply of potatoes to _____.

Decrease

Consumer expectation influence the _____ curve, and producer expectations influence the _____ curve.

Demand; supply

If a fitness center owner decided to hire additional employees but does not change the size of the fitness center or the amount of capital available to its employees to preform 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.

A change in supply:

Does not have to be a parallel shift.

The supply curve will shift to the left when the producers except:

Higher prices in the future and there are fewer sellers.

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

Suppose new genetically modified potatoes are developed that can be planted more closely together than before. This would cause the supply of potatoes to

Increase

Suppose the government increases subsides for wheat farmers who grow the wheat that goes into hamburger buns. That would cause the supply of hamburgers to _____.

Increase

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 subsides that are placed on businesses are likely to shift the _____ curve.

Supply

The law of _____ tells us that higher prices result in higher quantities being supplied.

Supply

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

Supply

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 curve displays the:

Supply of the good in a graph showing he different prices and their corresponding quantitates supplied.

If adhesive technology improves, the:

Supply of wooden toys will increase.

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

Table

A _____ on producers increase the cost of producing.

Tax

A payment made to the government that is the result of economic activity is a _____.

Tax

A payment made to the government that is the result of economic activity is a ______.

Tax

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

Technology.

When a farmer continues to add pounds of fertilizer to the fixed farm area that she ahs, eventually:

The additional output for each pound of fertilizer will fall.

Seller Expectations

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

When a nonprime determinant of supply changes:

The entire supply relationship changes.

Resources

The inputs used to produce goods and services; also known as factors of production. Resources fall into one of four categories: land, labor, capital, and entrepreneurial ability.

Technology

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

If production of a good involves a lower cost:

The opportunity cost of producing other goods 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 timer period.

A change in in the price of a good will affect:

The quantity of that good supplied to the market.

Suppose that in September, heating-oil producers anticipate a brutally cold winter and higher prices. We can expect that:

The supply of heating oil will fall now.

Suppose in January, ski sellers anticipate an exceptionally warm spring. We can expect:

The supply of skis to increase now.

Supply, supply curve, and supply schedule are:

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

When drawing a supply curve, we always place price on the _____ axis and quantity on the _____ axis.

Vertical; horizontal