ECON 201 3 Supply Assignment

the factors that cause a shift in the supply curve include:

- expectations about market conditions - resource costs and availability - technology - the number of sellers

resources are:

- inputs used to produce goods and services. - factors of production. - land, labor, capital, and entrepreneurial ability.

resources include:

- land - capital - entrepreneurial ability - labor

a change in supply:

- occurs when a non-price determinant of supply changes - has the effect of shifting the entire supply curve to the right or left

the supply curve will shift to the right if:

- producers expect lower future prices - the number of sellers increases

the factors that cause a shift in the supply curve include:

- resource costs and availability - technology - the number of sellers - expectations about market conditions

taxes and subsidies matter, because they:

- stimulate production or collect revenue - have unanticipated effects on other markets

the three different ways of expressing information about the supply of a good, service, or resources are:

- supply - supply curve - supply schedule

when a non-price determinant of supply changes:

- the entire supply relationship changes - the supply curve shifts to the right or to the left

if production of a good involves 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.

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

shifts to the right

the size of the supply shift is determined by the:

size of the producer tax.

the size of the producer subsidy will influence the:

size of the shift in supply.

market supply is the:

sum of individual supply curves added together.

the supply curve displays the:

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

if adhesive technology improves, the:

supply of wooden toys will increase.

supply

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

consumers

taxes and subsidies that are placed on...are likely to shift the demand curve.

seller expectations are:

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

seller

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

when a non-price determinant of supply changes:

the entire supply relationship changes.

a tax is a payment made to:

the gov't that is the result of economic activity.

market supply

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

supply

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

all the following can shift the supply curve except:

a change in income

quantity supplied

a change in price, all else held constant, generates a change in: note: a change in supply is influenced by a change in a non-price determinant.

supply

a change in taxes and subsidies on producers has an effect on...

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

a change in the price of a good.

in economics, a straight line is often called:

a curve

curve

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...

subsidy

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

tax

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

when more of a good, service, or resource is supplied at every price, there is:

a rightward shift of the supply curve

supply

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 the...schedule.

tax

a...on producers increases the cost of producing.

taxes and subsidies:

after the costs or benefits or producing goods and services.

a subsidy is a payment made:

by the government that does not necessarily require an exchange of economic activity in return.

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.

the supply curve will shift to the:

right, when producers expect lower prices in the future.

the price of a good and the quantity supplied are:

directly related.

a change in supply:

does not have to be a parallel shift.

the supply curve will shift to the left when producers expect:

higher prices in the future and there are fewer sellers.

diminishing marginal productivity

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:

according to 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.

opportunity

increasing the quantity of wheat supplied requires that farmers incur increasing cost for water, fertilizer, and other resources, thus increasing the...cost of growing wheat.

resources

inputs used to produce goods and services are:

technology is the:

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

when less of a good, service, or resource is supplied at every price, there is a:

leftward shift of the supply curve.

producers

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

the overall, or total, supply of a good, or resource is the:

market supply

horizontal

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

the supply curve changes in response to:

non-price determinants

increases

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

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

opportunity cost of production is increasing.

shifts in supply can be:

parallel and nonparallel

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.

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.

graph

the supply curve displays in a...the information found in the supply schedule.

price

the supply curve focuses entirely on the...of the product and holds everything else constant.

suppose that in September, heating-oil producers anticipate a brutally cold winter and higher prices. We can expect that:

the supply of heating oil will fall now. note: when suppliers expect higher future prices, current supply falls. Future supply might rise.

suppose that days of rain increase water levels in a river and wash away the docks, canoes, and kayaks of the riverside rental businesses. We can conclude that:

the supply of recreational river sports will fall

table

the supply schedule displays the supply in a...showing the different prices and their corresponding quantities supplied.

price; quantity

when drawing a supply curve, we always place...on the vertical axis and...on the horizontal axis.