MRU: 3.5 A Deeper Look at the Supply Curve

Q6: What is shown by the height of the supply curve? - The market equilibrium quantity - The maximum quantity sellers will buy at a particular price - The minimum price that a seller requires in order to sell a given quantity - The market price of a particular unit of a good

A: The minimum price that a seller requires in order to sell a given quantity

Q8: For a particular producer, producer surplus can be calculated as the difference between: - the maximum price any seller is willing to accept and the minimum price any seller is willing to accept. - the market price and the maximum price a seller is willing to accept. - the market price and the minimum price at which producers would be willing to sell a given quantity. - the maximum quantity a seller is willing to sell and the market quantity.

A: the market price and the minimum price at which producers would be willing to sell a given quantity.

Q7: In what two ways can a supply curve be read? - Horizontally and vertically - From the left to the right and the right to the left - As a price and as a quantity - From the top down and from the bottom up

A: Horizontally and vertically

Q5: Which of the following gives a horizontal reading of an increase in supply? - The supply curve shifts to the right because sellers are willing to sell the same quantity at a lower price. - The supply curve shifts to the right because sellers are willing to supply a greater quantity at any given price. - The supply curve shifts to the left because sellers are willing to supply a greater quantity at any given price. - The supply curve shifts to the left because sellers are willing to sell the same quantity at a lower price.

A: The supply curve shifts to the right because sellers are willing to supply a greater quantity at any given price.

Q9: Which of the following gives a vertical reading of a decrease in supply? - The supply curve shifts up because sellers require a higher price to sell the same quantity. - The supply curve shifts left because sellers are willing to supply a lower quantity at any given price. - The supply curve shifts down because sellers are willing to sell the same quantity at a lower price. - The supply curve shifts right because sellers are willing to supply a greater quantity at any given price.

A: The supply curve shifts up because sellers require a higher price to sell the same quantity.

Q4: Graphically, producer surplus is shown as the area _______ the supply curve and _______ the price. - above; above - below; below - above; below - below; above

A: above; below

Q2: The major factor that determines how the supply curve shifts is a change in: - technological innovations. - costs. - tastes and preferences. - a good's value.

A: costs.

Q10: The statement, "at a price of $20 per barrel, suppliers are willing and able to sell 30 million barrels of oil per day", is an example of reading a supply curve: - vertically. - as a price. - as a quantity. - horizontally.

A: horizontally.

Q3: The vertical reading of a supply curve tells us: the minimum price at which buyers will buy a given quantity. - the minimum price at which buyers will buy a given quantity. - the minimum price at which sellers will sell a given quantity. - the maximum price at which sellers will sell a given quantity. - the maximum price at which buyers will buy a given quantity.

A: the minimum price at which sellers will sell a given quantity.

Q1: Producer surplus is defined as: - the number of units that remain unsold. - the number of units a seller sells. - the producer's gain from exchange. - the amount of value buyers get from a good.

A: the producer's gain from exchange.