Economics Chapter 3
A movement along the supply curve is the same as a
change in the quantity supplied.
If a market shortage exists
consumers will compete for the product by offering to pay more.
Which of the following would not cause the market supply of cell phones to change?
A reduction in the desire for cell phones causes the price to fall.
If supply is constant, a decrease in the demand for potato chips will cause
a decrease in equilibrium price and a decrease in equilibrium quantity.
The price of chocolate candy bars rises. This could be due to
a decrease in the number of chocolate candy bar producers.
If demand is unchanged, a rightward shift in the supply curve for plasma TVs will cause
a increase in equilibrium quantity and a lower equilibrium price.
Ceteris paribus, which of the following will cause a rightward shift of the supply curve for plasma TVs?
a subsidy paid to the producers of plasma TV'sa
Which of the following would cause a decrease in the price of automobiles?
a technological advancement in automobile manufacturing
Which of the following events would cause a rightward shift in the supply curve for automobiles?
an improvement in the technology used to produce automobiles
If supply is unchanged, a rightward shift in the demand curve for gourmet ice cream will result in
an increase in equilibrium quantity and a higher equilibrium price.
If demand is constant, a leftward shift in the supply curve will result in
an increase in equilibrium quantity and a lower equilibrium price.
If supply is changed, a decrease in the demand for tacos will cause the equilibrium price to
fall and equilibrium quantity to fall.
If supply is unchanged, a decrease in the demand for soft drinks will cause equilibrium price to
fall and equilibrium quantity to fall.
The equilibrium price and quantity are determined by the
market mechanism.
Which of the following is a determinant of supply?
prices of the factors of production
If a market surplus exists
producers will compete for customers by reducing prices.
Ceteris paribus, according to the law of supply, if the price of product Z increases from $6 to $8, then the
quantity supplied of Z will increase.
Ceteris paribus, according to the law of supply, if the price of lawn mowing services decreases from $50 per lawn to $45 per lawn, then the
quantity supplied of lawn mowing will decrease.
In a market, the equilibrium price is determined by
the interaction of both demand and supply.
A market shortage occurs when
the market price is below equilibrium.
A market surplus occurs when
the quantity supplied exceeds the quantity demanded at a given price.
Which of the following provides the best example of the law of supply?
Falling labor costs cause an increase in supply.
Land, labor, capital, and entrepreneurship are bought and sold in the product market.
False
Ceteris paribus, which of the following will cause the supply of milk shakes to increase?
The cost of milk, a key ingredient, decreases.
A market is said to be in equilibrium when
The quantity demanded equals the quantity supplied.
The market supply of a particular good
is the sum of the quantities of the good that all producers are willing and able to sell at a particular price.
When there is a surplus in a market, prices are likely to fall because
sellers would rather lower their prices to sell some of their goods or services than keep prices higher and be stuck with unsold products.
Surpluses generate excess
supply.
An increase in the supply of frozen yogurt will take place when
the cost of producing frozen yogurt decreases.
The quantity of a good that suppliers are willing and able to supply at a given price in a given time period depends on
the costs of producing the good.
