chap 3
Which influence will shift the supply curve?
expectations of a future decline in prices
A supply schedule shows:
how much of a good or service would be supplied at different prices.
Yoghurt is an important ingredient in the production of frozen yoghurt. If the price of yoghurt increases, then one would expect, holding all other things constant:
the supply curve for frozen yoghurt to shift leftward.
In the market for barley, if the price of ethanol (which is made from corn, a crop that competes with barley for farmland) increases dramatically, the _____ barley would _____.
supply of; decrease
Consider the data in the table. The price of gasoline is $3.99 per gallon at the gas station. If Rexhall Fuel Supplies is a rational seller, how many gallons of gasoline should this seller be willing to sell?
20 million gallons per week
(Table: Supply of Matcha Tea) Use Table: Supply of Matcha Tea. If the price of matcha tea is $0.75 per cup, the total quantity of matcha tea supplied will be _____ cups per day.
50
As a part of a market research project, you survey six food trucks across the city to gather data on how many meals they would plan to sale at various prices. The data you collect is in the accompanying table. What is the change in the total supply of meals in your survey when the price falls from $7 per meal to $6 per meal?
The quantity supplied falls by 145.
A meat processing plant produces both steak and ground beef. What effect would rising market prices for steak have on the market for ground beef?
The supply of ground beef will decrease
An increase in the supply of coffee beans means:
a shift to the right of the entire supply curve for coffee beans.
Consider the supply curve for wool sweaters. An increase in the price of wool will:
decrease the supply of wool sweaters.
Daisy is a milk farmer in a perfectly competitive market where there are many milk farmers. The market price of milk is $0.15 per gallon, which is also the marginal cost per gallon of milk. If Daisy charges $0.25 per gallon, she will
not sell any milk.
A beach resort in Bali builds 24 villas with private pools. They also establish two restaurants using state-of-the-art equipment (such as multipurpose ovens, freezers, and food processors). Meals are prepared using organic, locally sourced vegetables and meat. The hotel also uses water from the town supplier. Based on this scenario, what are the fixed costs for the beach resort?
The construction of the villas
Which of the following lists only the factors that would cause a decrease in the supply of an item?
A rise in input prices; a decrease in the number of sellers in the market; a rise in the price of a substitute-in-production.
(Figure: Market for Roses) Which graph shows what will happen to the supply of roses if the price of roses falls?
Graph B
There are four suppliers in the packed meals market. The quantity of packed meals that each one is willing to supply per week at various prices is provided in the accompanying table. What is the change in the market supply for packed meals when the price falls from $6.25 per meal to $6.00 per meal?
The quantity supplied in the market falls by 149,000.
There are four suppliers in the packed meals market. The quantity of packed meals that each one is willing to supply per week at various prices is provided in the accompanying table. What is the change in the market supply for packed meals when the price rises from $6.25 per meal to $6.50 per meal?
The quantity supplied in the market rises by 152,000.
As a part of a market research project, you survey six food trucks across the city to gather data on how many meals they would plan to sale at various prices. The data you collect is in the accompanying table. What is the change in the total supply of meals in your survey when the price increases from $8 per meal to $9 per meal?
The quantity supplied rises by 165.
Exxon imports a significant amount of oil from Canada. What would happen to Exxon's supply curve if the value of the U.S. dollar falls against the Canadian dollar?
The supply curve will shift to the left
German firms import machinery from the UK. What will happen to the supply of German goods manufactured using machinery from the UK, if the value of the euro falls against the British pound?
The supply curve will shift to the left
Anderson windows and doors imports wood from Canada. What would happen to the supply curve of Anderson if the value of the U.S. dollar rises against the Canadian dollar?
The supply curve will shift to the right
German firms import machinery from the UK. What will happen to the supply of German goods manufactured using machinery from the UK, if the value of the euro rises against the British pound?
The supply curve will shift to the right
(Figure: Graph) In the graph, a decrease in the price of the item will cause the movement from
point H to point G.