econ supply

Shifters of Supply

1. inputs (milk=lattes, ink=pens, grapes=wine, lumber=house) 2. number of sellers 3. Changes in nature and politics (subsidies) 4. Changes in price/taxes

supply

The amount of goods available

a decrease in the supply of televisions is represented by

a leftward shift of the supply curve for televisions

a supply curve slopes upward because

an increase in price gives producers incentive to supply a larger quantity

Suppose you make jewelry. If the price of gold falls, then we would expect you to

be willing and able to produce more jewelry than before at each possible price

Lead is an important input in the production of crystal. If the price of lead decreases, then we would expect the supply of

crystal to increase

leftward shift of the supply curve

decrease in supply

fewer workers are needed to produce games

graph will shift right

price controls

legal restrictions on how high or low a market price may go

"other things equal when the price of a good rises, the quantity supplied of the good rises also." this is a statement of law of

supply

a technological advance will shift the

supply curve to the right

workers who produce video games receive $2 per hour wage increase

supply graft will shift left

if the numbers of sellers in a market increases,

supply in that market will increase

the federal gov imposes a $5 per game tax

supply line will shift left

A large firm enters the game business with a new line of exciting games. (Analyze the whole game industry)

supply line will shift right

Workers at a bicycle assembly plant currently earn the mandatory minimum wage. If the federal government increases the minimum wage by $1.00 per hour, then it is likely that the

supply of bicycles will shift to the left

Wheat is the main input in the production of flour. If the price of wheat decreases, then we would expect the

supply of flour to increase

which of the following would cause a movement upward and to the right along the supply curve for tomatoes?

the price of tomatoes rises

A decrease in the number of sellers in the market causes

the supply curve to shift to the left

the manufacturer of a computer game raises the price of games

this is a trick question; there will be a surplus

Suppose there is an increase in the price of steel. We would expect the supply curve for steel beams to

to shift leftward

In order make computer games available to low-income families, Congress sets a price ceiling for the games.

trick question; there's a shortage