Chapter 5 economics test
The price of salsa rises. How does the increase in the price of salsa affect the supply of salsa?
There is no change to the supply of salsa but the quantity of salsa supplied increases
market supply
Total of everything produced by companies in same industry
Determinants of supply
Trends, Inputs (cost of production), Expectations (future price), Sellers (number of firms)
Supply curves are
Upward sloping
To be part of the supply for a good, a producer must be
Both able and willing to supply the good
Which of the following results in a rightward shift of the supply curve of rutabagas?
A fall in the price of fertilizer used to grow rutabagas
Supply
Ability and willingness to produce
An increase in the number of pineapple growers result in
An increase in the supply of pineapples and a rightward shift in the supply curve of pineapples
Law of supply
As prices increase quantity supplied increases, opposite is also true
Mulch is shredded wood and is a by-product in the production of lumber. Because these two goods are produced together, they are
Complements in production
Advances in productivity increase supply because they
Decrease the cost of production
Which of the following helps explain why the law of supply exists?
Larger outputs result in higher costs of production
Which of the following increase the supply of a product
Lower prices for the resources used to produce the product
Elasticity of supply
Measure how sensitive quantity supplied is to price change
Supply schedule
Ordered pairs make supply curve
Substitutes
Product has options
Complements
Production yield by-product
If the number of sellers decreases, then the supply curve ________ and the supply ________
Shifts leftward; decreases
In a supply schedule, which of the following changes?
The price of the good