Supply

A tax on producers:

-Increases the cost of producing.

The size of the supply shift is determined by the:

-Size of the producer tax.

When drawing a supply curve, we always place blank on the vertical axis and blank supplied on the horizontal axis.

Blank 1: price or P Blank 2: quantity or Q

At a firm's level, higher expected prices can increase the current blank while decreasing the current blank to the market.

Blank 1: production or output Blank 2: supply

Which of the following likely affects the supply curve?

Taxes and subsidies placed on producers.

A small nation produces coffee and chickens. What is one possible reason the opportunity cost of producing chickens will increase relative to coffee?

The cost of producing coffee has decreased.

The anticipated future outcomes, including prices, that sellers associate with the production of a good, service, or resource are expectations of the (consumer/seller).

seller

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

sellers

Taxes and subsidies that are placed on businesses are likely to:

shift the supply curve.

An increase in supply is a:

shift to the right.

When we say in economics that there is an increase in supply, we mean that the supply curve:

shifts to the right.

Better technology can:

significantly decrease the cost of producing a good.

The size of the producer subsidy will influence the:

size of the shift in supply.

Taxes and blank alter the costs or benefits of producing goods and services.

subsidies

A(n) blank to producers lowers the cost of producing.

subsidy

A payment made by the government that does not necessarily require an exchange of economic activity in return is called a:

subsidy.

A change in taxes and subsidies on producers alters market blank.

supply

A graphical representation of the relationship between the price of a good, service, or resource and the quantities producers are willing and able to supply is known as the blank curve.

supply

When the number of sellers decreases,:

supply decreases

When the number of sellers increases:

supply increases

Suppose once students return to campus after the summer they discover three new pizza places. Based on this information, we can conclude that the:

supply of pizzas will increase.

Suppose that tomato producers expect prices to fall in the future. This will likely cause current:

supply to increase.

The knowledge, inventions, and innovations that can potentially increase resource productivity are known as:

technology

When a farmer continues to add pounds of fertilizer to the fixed farm area that she has, eventually:

the additional output for each pound of fertilizer will fall.

Seller expectations are:

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

When a nonprice determinant of supply changes,:

the entire supply relationship changes.

Technology refers to:

the knowledge, inventions, and innovations that can potentially increase resource productivity

The government decides to implement a tax on turnips. What will be the effect on the turnip market?

A change in supply

An increase in the cost of a resource will have what effect on the market?

A decrease in supply

Which of the following is a possible outcome if a nonprice determinant of supply changes?

A decrease in supply at all possible prices An increase in supply at all possible prices

Consumer expectations influence the blank curve, and producer expectations influence the blank curve.

Blank 1: demand Blank 2: supply

A technological improvement reduces the cost of harvesting almonds. How will this event affect the market for almonds?

The supply of almonds increases

If consumers believe that prices will decrease in the future,:

demand decreases today.

A change in supply:

does not have to be a parallel shift.

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

left

Sellers are:

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

If manufacturing technology improves,:

more manufactured products will be supplied

Shifts in supply:

occur when there is a change in the nonprice determinants of supply. can be parallel.

blank refers to the quantity of output firms produce.

production

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

right

If the production of a good incurs at a lower cost,:

the opportunity cost (in terms of other goods that could have been produced) has decreased. the opportunity cost of producing other goods (in terms of the amount of this good that could have been produced) has increased.

Subsidies most often take the form of payments to businesses by governments. (True or False)

True

The law of blank tells us that higher prices result in higher quantities being supplied.

supply

The size of the producer subsidy will influence the size of the shift in blank.

supply

The three different ways of expressing information about the supply of a good - service - or resource are:

supply - supply curve - and the supply schedule.

A graphical representation of the relationship between the price of a good, service, or resource and the quantities producers are willing and able to supply is the:

supply curve.

When you plot the data points from the supply schedule, you create the:

supply curve.

The supply schedule displays the:

supply of the good in a table showing the different prices and their corresponding quantities supplied.

The _____ displays the relationship between quantity and price supplied supply in a table.

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 is known as the:

supply schedule.

The supply curve focuses entirely on the changes in the blank of the product and holds everything else constant.

price

Supply - supply curve - and supply schedule are:

The three different ways of expressing information about the supply of a good, service, or resource.

Market supply is the:

-Sum of individual supply added together.

A tax is a payment made to:

-The government that is the result of economic activity.

A change in the price of a good will affect:

-The quantity of that good supplied to the market.

The size of the producer tax determines the:

-size of the supply shift.

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

Blank 1: market Blank 2: supply

When drawing a supply curve, we always place price on the blank axis and quantity on the blank axis.

Blank 1: vertical or Y Blank 2: horizontal or X

What is the effect of a subsidy being placed on the market?

A decrease in the cost of production

Which of the following events will shift the supply curve for cheese to the right?

A decrease in the price of milk, a resource used to produce cheese

When a nonprice determinant of supply changes what will be the effect on the market?

A shift in the supply curve at all possible prices

A new technology increases the production of widgets by 25% at all possible prices. Which of the following statements offers the best description of the location of the new supply curve, relative to the original curve?

A shift to the right with a greater increase occurring at higher price levels.

Which of the following would shift the supply curve for guitars?

A tax is implemented on guitars

How is a supply curve plotted?

Quantity supplied is on the horizontal axis and price of the good is on the vertical axis.

How is the market supply of a good or service calculated?

Summing the quantity produced by all sellers at every price within the market.

Which of the following likely affects the demand curve?

Taxes and subsides placed on consumers.

Which principle states that as the price of a good increases the quantity supplied will increase?

The law of supply

The quantity of a good supplied to the market is affected by:

a change in the price of a good.

In economics, a downward-sloping or upward-straight line is often called:

a curve.

When less output is being produced at every price, we say there is:

a decrease in supply.

A subsidy:

a sum of money granted by the government or a public body to assist an industry or business so that the price of a commodity or service may remain low or competitive.

Taxes and subsidies that are placed on businesses are likely to shift the blank curve.

supply

An increase in the quantity of a good - service - or resource supplied at every price is:

an increase in supply.

The taxes and subsidies that are under consideration in analyzing supply apply to (businesses/consumers).

businesses

The taxes and subsidies that are under consideration in analyzing supply are applied to:

businesses.

Resources (such as land) and technology (such as the ability to draw water from a well):

contribute to how a good or service is produced for the market.

A graphical representation of the relationship between the price of a good, service, or resource and the quantities producers are willing and able to supply is known as the supply blank.

curve

There is a technological improvement in the process for harvesting oranges. As a result, the cost of producing oranges will:

decrease and supply will increase.

If a fitness center owner decides to hire additional employees but does not change the size of the fitness center or the amount of capital available to its employees to perform their tasks, the fitness center will likely experience:

diminishing marginal productivity.

The price of a good and the quantity supplied are:

directly related.

According to the law of diminishing marginal productivity, the marginal productivity of additional variable resources will eventually fall, all else held constant, if at least one input is blank.

fixed

The supply curve is a(n) blank representation of the information found in the supply schedule.

graphical

The law of supply tells us that:

higher prices of goods result in higher quantities of goods being supplied

Market supply is the _____ summation of the quantities supplied by individuals - firms - states - or even nations at each price over a fixed time period.

horizontal

According to the principle of diminishing marginal productivity:

if at least one input of production is fixed, the marginal productivity of additional variable resources will eventually fall, all else held constant.

According to the the law of supply, if the price of apple juice rises, producers of apple juice will be willing and able to:

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

A tax on producers the cost of producing.

increases

On the supply side of the market, when the price of a good increases, the quantity supplied of the good blank.

increases

On the supply side of the market, when the price of a good increases, the quantity supplied of the good:

increases.

Increasing the quantity of wheat supplied requires that farmers incur increasing costs for water, fertilizer, and other resources, thus (increasing/decreasing) the opportunity cost of growing wheat.

increasing

According to the law of _____ , producing significantly more of a product than current levels will come at a higher cost, so the price of the good must rise for sellers to be willing and able to increase the quantity of the good they supply to the market.

increasing opportunity costs

When the supply curve shifts to the left,:

it is called a decrease in supply. lower quantities of a good, service, or resource are produced at all prices.

Taxes charged on and subsidies provided to consumers are:

likely to shift the demand curve.

A subsidy to producers:

lowers the cost of producing

The sum of individual supply curves added together reflect the blank supply curve.

market

The horizontal summation of the quantities supplied by individuals - firms - states - or even nations at each price over a fixed time period represents the:

market supply.

The overall - or total - supply of a good - service - or resource is the:

market supply.

The total quantity all producers are willing and able to produce at every price is known as:

market supply.

The supply curve shifts in response to changes in:

non-price determinants

Firms will be willing and able to produce more output only when prices rise because the:

opportunity cost of production is increasing.

All else equal, a change in the blank of a good, service, or resource changes the quantity supplied of the good, service, or resource.

price

Companies will be willing and able to produce additional units of a good only if the:

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

A movement along the supply curve is the result of a change in _______ , while a shift in the supply curve is the result of a change in ________.

price; non-price determinants

Any change in technology and the availability and the quality of resources are likely to affect the blank that producers are willing and able to supply to the market at every price.

quantity

When we talk about the supply of a good - we are referring to the:

quantity of the good producers are willing and able to supply at a variety of different prices over a fixed time period - all else held constant.

Any change in the availability and quality of resources and technology will likely affect the:

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

Inputs used to produce goods and services are:

resources

Another term for the factors of production used to produce goods and services is:

resources.

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 is known as the supply blank.

schedule

The supply blank displays the supply in a table showing the different prices and their corresponding quantities supplied.

schedule

To simplify analysis in economics, supply curves are often drawn as:

sloping lines.

The supply schedule displays the supply in a(n) blank form, showing the different prices and their corresponding quantities supplied.

table

A payment made to the government that is the result of economic activity is called a blank.

tax

blank and subsidies alter the costs or benefits of producing goods and services.

tax

The supply curve is a representation of the relationship between:

the price of the product and the quantity supplied.

When the price of smart phones increases:

the quantity of smart phones supplied will increase

According to the law of supply, as the price of a good, service, or resource rises:

the quantity supplied will increase - and vice versa - all else held constant.

When the number of sellers in a market changes,:

the supply curve shifts

There is an increase in the supply of pumpkins. This event can be seen graphically as:

the supply curve shifts to the right.

In a market, when the price or availability of resources used in the production of a certain good changes,:

the supply curve shifts.