Micro Chapter 3 Supply Launchpad Questions
Which event would shift the supply curve for corn to the right?
a decrease in land taxes
Subsidies on domestically produced sport utility vehicles cause a(n) _____ in the supply of _____ sport utility vehicles
increase; domestic
The price of automobiles is rising because more people want to purchase cars. As a result,
quantity supplied increases
If sellers expect the price of their products to rise in the future, they are likely to:
restrict their supply in the near term
The development of solar panels for home installation has improved due to technological advances and subsidies. These factors shift the supply curve to the ______ and result in the equilibrium price of solar panel installation to _____
right; fall
The law of supply states that as prices _____, the quantity _____
rise; supplied rises
which of these circumstances would NOT affect the supply of new automobiles?
higher interest rates for new car financing
A shift to the right of the supply curve could be caused by a(n):
improvement in production technology
If the price of used plug-in electric cars is expected to rise in six months, the reaction in the supply of those cars in the market today would likely be a(n):
shift of the supply curve to the left
According to the law of supply, producers will supply more of their products when:
the price rises
Electricity is essential in the production of aluminum. If electricity prices increase:
the supply curve for aluminum shifts leftward
Ceteris paribus, an improvement in production technology:
shifts the supply curve to the right, reducing the equilibrium price and increasing the equilibrium output
Which event will cause an increase in the supply of yogurt?
an increase in the number of sellers in the yogurt market
Which event will NOT cause the supply curve for kayaks to shift to the left?
a decrease in the price of a kayak
Which circumstance would increase the supply of pork sausage?
a decrease in the price of ingredients used to produce sausage
Which event will NOT lead to a decrease in supply?
a decrease in the product price
Which factor would shift the supply of skateboards to the right?
a large reduction in the price of wheels used to produce skateboards
Which event would shift the supply curve for gasoline to the right?
a technological innovation in the oil-drilling industry that dramatically lowers the cost of exploration
Which circumstance will NOT decrease the supply of commercial air travel?
a technology change that makes aircrafts more fuel efficient
Which event would shift the supply curve for pipes to the left?
an increase in taxes on pipes
Suppose that the price of pork rises. We would expect that the supply of beef will:
fall because farmers will shift resources from beed production to pork production
The law of supply states that, if prices:
fall, producers will offer fewer products to the market
The fundamental reason why supply curves slope upward is:
increasing costs
A leather company produces shoes and belts. What will the company do if it expects the price of shoes to rise in the near future?
it will move resources from belt production to shoe production, thereby decreasing the supply of belts
Which item is NOT a determinant of supply?
national income
Suppose that a major drought causes a 30 percent reduction in the peanut harvest. If there is no change in demand, this event would cause a ____ at the original equilibrium price, and the equilibrium price will therefore _____ and the equilibrium quantity will ______
shortage; rise; fall
From supply curve 1, supply curve 2 shifts right, this might be caused by an increase in:
subsidies
Wheat is the main input in the production of flour. If the price of wheat increases, all else equal, we would expect the:
supply of flour to decrease
If television sellers expect the prices of televisions to fall in the future, we are likely to see the:
supply of televisions increase
An increase in the cost of coffee beans that are used to make coffee will cause the ____ for coffee to shift _____
supply; left
One of the most important ingredients in bubble tea is the tapioca pearls that are added to the tea. If the price of tapioca flour increases, what will happen to the supply of bubble tea, all else being equal?
the supply of bubble tea will decrease
When the supply of citrus products decreases:
the whole supply curve shifts upward and to the left
