Supply

Nonprice determinant of supply

A change in a nonprice determinant of supply shifts the supply curve. When the supply increases, the supply curve shifts to the right. When supply decreases, supply curve shifts to the left.

Shift in supply

A change 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, while a decrease in supply is represented by a leftward shift of the supply curve.

What is the result of negative technological changes tending to diminish productivity?

Decreases supply and shifts supply curve to the left.

What is the result of positive technological changes tending to improve productivity?

Increases supply and shifts supply curve to the right.

Resources

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

Knowledge, inventions, and innovations that can potentially increase resource productivity.

When producers expect higher future prices, current supply shifts to the ______

Left

Sellers

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

Quantity supplied

Quantity of a good, service, or resource that producers are willing and able to supply at a given price.

Supply

Refers to the quantity of output firms are willing and able to provide to the market at different prices

Production

Refers to the quantity of output firms produce

Two important nonprice determinants that affect a firm's willingness and ability to produce output are...

Resource costs and technology

When producers expect lower future prices, current supply shifts to the ______.

Right

What happens to the supply curve when lower resource costs reduce overall costs of production and are likely to increase supply?

Shifts supply curve to the right

What happens to the supply curve when higher resource costs increase overall costs of production and decrease supply?

Supply curve shifts to the left

What happens to the supply curve when the number of sellers in a market decreases?

Supply decreases and the supply curve shifts to the left

The factors that cause a shift in the supply curve include: a. expectations about market conditions b. resource costs and availability c. technology d. price of complements e. number of buyers f. number of sellers e. change in income

a. expectations about market conditions b. resource costs and availability c. technology f. number of sellers

In economics, supply and demand curves that are neither perfectly elastic nor perfectly inelastic are often illustrated as: a. linear curves b. vertical lines c. horizontal lines

a. linear curves

Which of the following scenarios would likely shift the supply of cars to the left (decrease in supply)? a. Price of steel and aluminum increase b. automobile workers become more productive c. price of cars decreases d. price of automotive paint decreases

a. price of steel and aluminum increase

The law of supply indicates that, all else held constant, a. producers will be willing and able to offer more of a product at high prices than at low prices b. the product supply curve is downward-sloping c. consumers will be willing and able to purchase less of a good at high prices than at low prices d. producers will be willing and able to offer more of a product at low prices than at high prices

a. producers will be willing and able to offer more of a product at high prices than at low prices

An increase in the supply of music downloads indicates that more music downloads will be: a. supplied, even if prices of music downloads stayed the same b. supplied, because music download prices have decreased c. demanded, because sellers are selling more music downloads d. demanded, because sellers are putting music downloads on sale

a. supplied, even if prices of music downloads stayed the same

The knowledge, inventions, and innovations that can potentially increase resource productivity are known as: a. supply b. technology c. profit d. demand

a. supply

Shifts in supply: a. are due to changes in price b. can be parallel c. affect demand d. occur when there's a change in the nonprice determinants of supply

b. can be parallel d. occur when there's a change in the nonprice determinants of supply

The supply curve will shift to the left in the current period when producers expect: a. lower prices in the future and there are fewer buyers b. lower prices in the future and there are more buyers c. higher prices in the future and there are fewer sellers d. lower prices in the future and there are fewer sellers

c. higher prices in the future and there are fewer sellers

According to the law of supply, if the price of apple juice rises, producers of apple juice will be willing and able to: a. decrease the quantity of apple juice they supply to the market b. increase the quantity of apple juice they buy in the market c. increase the quantity of apple juice they supply to the market d. decrease the quantity of apple juice they buy in the market

c. increase the quantity of apple juice they supply to the market

Farmers withholding some of their current corn harvest from the market because they anticipate a higher price of corn in the near future would cause a : a. rightward shift in the current supply of corn b. movement up along the current supply curve of corn c. leftward shift in the current supply of corn d. movement down along the current supply curve of corn

c. leftward shift in the current supply of corn

Companies will be willing and able to produce additional units of a good only if the: a. demand for the good is decreasing b. supply of the good is decreasing c. price of the good increases enough to cover the increasing costs d. price of the good is constant

c. price of the good increases enough to cover the increasing costs

The supply curve will shift to the right in the current period if: a. producers expect higher future periods b. number of buyers increases c. producers expect lower future prices d. number of sellers increases e. number of sellers decreases

c. producers expect lower future prices d. number of sellers increase

An increase in tax rates on consumers is likely to: a. increase the level of employment in the economy b. increase the disposable income of consumers c. shift the demand curve d. shift the supply curve

c. shift the demand curve

Which of the following scenarios would likely shift the supply curve for potatoes to the right (increase in supply)? a. price of fertilizer increases b. potato growers expect the price of potatoes to be lower this year than last year c. teenagers in potato-farming towns leave to go to college d. a new harvester enables farmers to bring in ripe potatoes twice as fast as they did before

d. a new harvester enables farmers to bring in ripe potatoes twice as fast as they did before

When a nonprice determinant of supply changes: a. entire demand relationship changes b. individual supply relationship changes c. price changes d. entire supply relationship changes

d. entire supply relationship changes

Firms will be willing and able to produce more output only when prices rise, because the: a. consumer demand is increasing b. opportunity cost of production is decreasing c. marginal cost is decreasing d. opportunity cost of production is increasing

d. opportunity cost of production is increasing

Taxes and subsidies matter because they: a. increase the volume of trade among countries b. increase efficiency in production by altering the allocation of resources c. increase the disposable income of consumers d. stimulate production or collect revenue e. have unanticipated effects on other markets

d. stimulate production or collect revenue e. have unanticipated effects on other markets

Subsidy

A payment made by the government that doesn't necessarily require an exchange of economic activity in return. Subsidies most often take the form of payments to businesses. All else held constant, supply increases when subsidies are provided to producers, shifting the supply curve to the right; supply decreases when subsidies are removed, shifting the supply curve to the left.

Tax

A payment made to government that's result of economic activity. Taxes are generally collected from both individuals and firms. All else held constant, imposition of taxes on producers decreases supply, shifting the supply curve to the left; reduction or removal of taxes on producers increases supply, shifting supply curve to the right.

Law of Supply

A principle in economics that states that as the price of a good, service, or resource rises, quantity supplied will increase, and vice versa, all else held constant. Prices fall, quantity supplied decreases. Changes in price allow us to move along a supply curve.

Supply schedule

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 over a fixed time period, all else held constant.

Seller expectations

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

Movement along a supply curve

Change in the quantity of a good, service, or resource supplied due to a change in its price. Graphically, this change is represented as a movement along an existing supply curve.

Supply curve

Graphical representation of the relationship between price of a good, service, or resource and the quantities producers are willing and able to supply over a fixed time period, all else held constant. Represents quantity of a good, service, or resource that producers are willing and able to supply to the market at different prices over a fixed time period.

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

Market supply

Market supply

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 time period, all else held constant.

Diminishing marginal productivity

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

What happens to the supply curve when the number of sellers in a market increases?

Supply increases and supply curve shifts to the right

Supply vs supply curve vs supply schedule

Supply of sunglasses, we refer to the quantity of sunglasses producers are willing and able to supply at a variety of different prices over a fixed time period. It's not just how many sunglasses suppliers are supplying today at the current price, but how many they would be willing and able to supply if prices changed. Supply schedule displays supply of sunglasses in a table showing different prices and their corresponding quantities supplied. Supply curve displays in a graph information found in the supply schedule for a more visual representation.

All else held constant, if the price of a resource used to produce product X falls, the: a. supply curve of X will shift to the right b. demand curve of X will shift to the right c. supply curve of X will shift to the left d. supply curve of X will not shift

a. supply curve of X will shift to the right

Which of the following likely affects the demand curve? a. taxes and subsides placed on consumers b. change in the number of sellers c. change in the price or availability of resources d. taxes and subsidies placed on producers

a. taxes and subsides placed on consumers

Any change in the availability and quality of resources and technology will likely affect: a. existence of taxes and subsidies in the market b. quantity producers are willing and able to supply to the market at every price c. quantity consumers are willing and able to purchase at every price d. quality and regulation of the product

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

Payments (subsidies) or chargers (taxes) initially affect the: a. number of producers b. supply of output in the market place c. quantity traded and the market price of goods and services d. number of buyers

b. supply of output in the market place c. quantity traded and the market price of goods and services

Which of the following likely affects the demand curve? a. change in the number of sellers b. taxes and subsides placed on consumers c. change in the price or availability of resources d. taxes and subsidies placed on producers

b. taxes and subsides placed on consumers

A decrease in supply causes: a. a decrease in the market price b. supply curve to shift to the left c. an increase in the market price d. supply curve to the shift to the right

b. the supply curve to shift to the left c. increase in the market price

A tax on producers: a. lowers the price b. increases the quantity c. increases the cost of producing d. decreases the cost of producing

c. Increases the cost of producing

Which of the following will shift the supply curve for USB flash drives to the right? a. an increase in the number of buyers b. an increase in consumers' income c. an increase in the number of sellers d. an increase in the cost of resources used to manufacture USB flash drives

c. an increase in the number of sellers

At a firm's level, higher expected prices can increase the current _____ while decreasing the current _____to the market

production; supply