Econ hw3

Why does the supply curve NOT shift following a price change?

Because you can read the same graph to find the new quantity supplied.

he _____ reminds us that things other than price can influence your supply.

interdependence principle

When you draw an individual supply curve, _____ goes on the vertical axis and _____ is on the horizontal axis.

price; quantity

An individual supply curve is a graph plotting the: Please choose the correct answer from the following choices, and then select the submit answer button.

quantity of an item that a business plans to sell at each price

The supply curve is upward-sloping because:

the marginal cost curve is upward-sloping.

The individual supply curve is _____ because at higher gas prices, a supplier plans to supply a _____quantity.

upward-sloping; larger

Marginal costs include:

variable costs.

If an oil refinery can supply 2 million gallons per week when the price is $3 per gallon, what will be the market quantity supply for 10 refineries having the same supply decisions

20 million gallons

_____ is a graph plotting the quantity of an item that a business plans to sell at each price

Individual supply curve

When you change the quantity of output you produce, _____ costs will not vary with the units of outputs.

fixed

When your suppliers increase the prices of your inputs, they increase your _____, and this will shift your supply curve to _____.

marginal costs; the left

When your suppliers decrease the prices of your inputs, they decrease your _____, and this will shift your supply curve to _____

marginal costs; the right

Every business must choose what _____ to supply when the _____ changes

quantity; price

All the following can be classified as supply, EXCEPT:

taking an economics class at your college.

When market conditions change, each firm responds by changing its supply. When all individual supply curves shift, the market supply curve:

will shift also

Your supply of a good will _____ if the price of a complement-in-production _____, shifting the supply curve to the right.

increase; rises

If an oil refinery can supply 2 million gallons per week when the price is $2 per gallon, what will be the market quantity supply for 50 refineries having the same supply decisions?

100 million gallons

When new businesses enter the market, the supply from these businesses needs to be added to the _____. That means they increase the total quantity supplied at each price, shifting the supply curve to _____.

market supply; the right

When your suppliers decrease the prices of your inputs, they decrease your _____, and this will shift your supply curve to _____.

marginal costs; the right

To distinguish between movements along a supply curve and shifts in supply curves, if the only thing that's changing is the price, then you're thinking about

a movement along the supply curve.

We usually consider _____ to be motivated by a desire by consumers to maximize economic surplus, while businesses on the _____ side are trying to maximize profits.

demand; supply

In an individual supply curve, _____ prices lead to _____ in the quantity supplied.

higher; an increase

Every business must choose what quantity to supply when the price changes. When you graph these choices, the resulting individual supply curve illustrates the extent to which a _____ price leads to a(n) _____ quantity supplied

higher; larger

Your supply curve is your marginal cost curve, and so anything that will change _____ will shift your _____.

marginal costs; supply curve

In the _____ diminishing marginal product can occur when some of your _____ are fixed. Please choose the correct answer from the following choices, and then select the submit answer button. Answer choices

short run; inputs

he Rational Rule for Sellers is important but does NOT

tell sellers how to set the price against the competitors.

When your firm is producing an additional unit, the marginal benefit to your firm is:

the amount of money your firm gets from selling the additional unit.

The tendency for quantity supplied to be higher when the price is higher is called:

the law of supply.

To forecast the total quantity supplied, simply locate the price on the _____ and then look across until you hit the supply curve and finally look straight down to the _____ for your answer.

vertical axis; quantity