BR3.3: Bridge: Supply

The supply curve is upward sloping because at higher prices ________.

firms perceive that the marginal benefit of producing the good has increased

Which of the following is most likely to shift the supply curve for pet grooming services leftward?

An increase in the cost of pet grooming supplies.

If more states legalize recreational marijuana, what is the likely effect on the supply of marijuana?

It would increase as the risk of prosecution falls.

If the government offers a tax deduction to companies producing solar panels, what will happen in the market for solar panels?

The supply curve will shift to the right, increasing supply.

As the price of copper continues to rise, which of the following is a consequence that may result?

There will be a rise in copper wire thefts.