Supply

1. / Which statement is true about supply?
A. / There is an inverse relationship between price and quantity supplied.
B. / Supply refers to the amount of inventory that sellers have in their warehouses.
C. / As price decreases, producers are willing to put more of the good on the market for sale.
D. / To entice producers to offer more of a good on the market for sale, price must rise.
2. / If the price of a product decreases, we would expect
A. / demand to increase.
B. / quantity supplied to decrease.
C. / supply to decrease.
D. / quantity supplied to increase.
3. / "Price" in the statement of the Law of Supply refers to the
A. / amount that buyers are willing and able to pay for each unit of the product.
B. / marginal cost of producing the last unit of the product.
C. / total revenues that sellers receive for selling a given quantity of the product.
D. / total amount that buyers pay in order to acquire a given quantity of the product.
4. / An "increase in the quantity supplied" suggests a
A. / rightward shift of the supply curve.
B. / movement down along the supply curve.
C. / movement up along the supply curve.
D. / leftward shift of the supply curve.
5. / The law of supply indicates that, other things equal,
A. / producers will offer more of a product at high prices than at low prices.
B. / the product supply curve is downsloping.
C. / consumers will purchase less of a good at high prices than at low prices.
D. / producers will offer more of a product at low prices than at high prices.
6. / The upward slope of the supply curve reflects the
A. / principle of specialization in production.
B. / law of supply.
C. / fact that price and quantity supplied are inversely related.
D. / law of diminishing marginal utility.
7. / The upward slope of the supply curve reflects the
A. / principle of specialization in production.
B. / law of increasing substitution.
C. / fact that price and quantity supplied are inversely related.
D. / property of diminishing marginal product.
8. / Use the figure below to answer the following question.

An increase in quantity supplied is depicted by a
A. / move from point y to point x.
B. / shift from S1 to S2.
C. / shift from S2 to S1.
D. / move from point x to point y.
9. / Use the figure below to answer the following question.

A movement along the supply schedule from point y to point x is associated with
A. / an increase in marginal cost.
B. / a decrease in marginal cost.
C. / more aggressive sales by a firm.
D. / better pricing by a firm.
10. / Use the figure below to answer the following question.

A movement along the supply schedule from point y to point x is associated with
A. / diminishing marginal utility.
B. / increasing marginal utility.
C. / diminishing marginal product.
D. / increasing marginal product.
11. / In order to derive the market supply curve from individual supply curves, we add up the
A. / various prices that individual sellers are charging for the product.
B. / various quantities that individual sellers want to sell at specific price levels.
C. / total number of sellers in the market at a given time.
D. / costs that all individual sellers incur in producing the product.
12. / The vertical axis of a graph that shows a market supply curve indicates the
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A. / prices at which firms would like to sell their different products.
B. / number of sellers who are in the market for this product.
C. / various quantities of output at which the market will be cleared.
D. / the marginal cost of the last unit produced by some firm.
13. / In understanding and analyzing "market supply," we focus on how much all
A. / firms want to sell.
B. / firms have sold in the recent past.
C. / firms will sell in the future.
D. / firms can and will sell at a given price.
14. / The table below shows the weekly supply for hamburger in a market where there are just three sellers.
Price / Seller 1
Qs 1 / Seller 2
Qs 2 / Seller 3
Qs 3
$5 / 8 / 5 / 4
4 / 6 / 4 / 3
3 / 4 / 3 / 2
2 / 2 / 2 / 1
If there were 100 sellers in the market, each with a supply schedule identical to seller 2 in the table above, then the weekly quantity of hamburger supplied in the market at a price of $5 would be
A. / 500.
B. / 400.
C. / 300.
D. / 200.
15. / The table below shows the weekly supply for hamburger in a market where there are just three sellers.
Price / Seller 1
Qs 1 / Seller 2 Qs 2 / Seller 3 Qs 3
$5 / 8 / 5 / 4
4 / 6 / 4 / 3
3 / 4 / 3 / 2
2 / 2 / 2 / 1
Refer to the above table. If the price of hamburger falls from $5 to $4, then the weekly market quantity supplied will
A. / increase from 13 to 17.
B. / decrease from 17 to 13.
C. / increase from 9 to 17.
D. / decrease from 17 to 9.
16. / The table below shows the weekly supply for hamburger in a market where there are just three sellers.
Price / Seller 1
Qs 1 / Seller 2
Qs 2 / Seller 3
Qs 3
$5 / 8 / 5 / 4
4 / 6 / 4 / 3
3 / 4 / 3 / 2
2 / 2 / 2 / 1
If there were 200 sellers in the market, each with a supply schedule identical to seller 3 in the table above, then the weekly quantity of hamburger supplied in the market at a price of $4 would be
A. / 800.
B. / 600.
C. / 400.
D. / 200.
17. / The table below shows the weekly supply for hamburger in a market where there are just three sellers.
Price / Seller 1
Qs 1 / Seller 2 Qs 2 / Seller 3 Qs 3
$5 / 8 / 5 / 4
4 / 6 / 4 / 3
3 / 4 / 3 / 2
2 / 2 / 2 / 1
If the price of hamburger increases from $3 to $5, then the weekly market quantity supplied will
A. / increase from 13 to 17.
B. / decrease from 17 to 13.
C. / increase from 9 to 17.
D. / decrease from 17 to 9.
18. / The table below shows the weekly supply for hamburger in a market where there are just three sellers.
Price / Seller 1
Qs 1 / Seller 2 Qs 2 / Seller 3 Qs 3
$5 / 8 / 5 / 4
4 / 6 / 4 / 3
3 / 4 / 3 / 2
2 / 2 / 2 / 1
1 If there were 300 sellers in the market, each with a supply schedule identical to seller 1 in the table above, then the weekly quantity of hamburger supplied in the market at a price of $2 would be
A. / 800.
B. / 600.
C. / 400.
D. / 200.
19. / The table below shows the weekly supply for hamburger in a market where there are just three sellers.
Price / Seller 1
Qs 1 / Seller 2 Qs 2 / Seller 3 Qs 3
$5 / 8 / 5 / 4
4 / 6 / 4 / 3
3 / 4 / 3 / 2
2 / 2 / 2 / 1
If the price of hamburger increases from $2 to $4, then the weekly market quantity supplied will
A. / increase from 5 to 9.
B. / decrease from 9 to 5.
C. / increase from 5 to 13.
D. / decrease from 13 to 5.
20. / The table below shows the weekly supply for hamburger in a market where there are just three sellers.
Price / Seller 1
Qs 1 / Seller 2 Qs 2 / Seller 3 Qs 3
$5 / 8 / 5 / 4
4 / 6 / 4 / 3
3 / 4 / 3 / 2
2 / 2 / 2 / 1
If the price of hamburger decreases from $3 to $2, then the weekly market quantity supplied will
A. / increase from 5 to 9.
B. / decrease from 9 to 5.
C. / increase from 5 to 13.
D. / decrease from 13 to 5.
21. / The table below shows the weekly supply for hamburger in a market where there are just three sellers.
Price / Seller 1
Qs 1 / Seller 2 Qs 2 / Seller 3 Qs 3
$5 / 8 / 5 / 4
4 / 6 / 4 / 3
3 / 4 / 3 / 2
2 / 2 / 2 / 1
If seller 3 exits the market (goes out of business), then the weekly market quantity supplied at a price of $4 will be _____.
A. / 6
B. / 9
C. / 10
D. / 13
22. / An increase in the supply for MP3 music indicates that more will be
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A. / sold even if prices of MP3 music stayed the same.
B. / sold because MP3 music prices have decreased.
C. / demanded because sellers are selling more MP3 music.
D. / demanded because sellers are putting MP3 music on sale.
23. / When economists say that the supply for a product has decreased, they mean that the
A. / supply curve has shifted to the right.
B. / product has become particularly abundant for some reason.
C. / product has become more expensive and thus consumers are buying less of it.
D. / supply curve has shifted to the left.
24. / Use the figure below to answer the following question.

A decrease in supply is depicted by a
A. / move from point x to point y.
B. / shift from S1 to S2.
C. / shift from S2 to S1.
D. / move from point y to point x.
25. / Use the figure below to answer the following question.

An increase in quantity supplied is depicted by a
A. / move from point y to point x.
B. / shift from S1 to S2.
C. / shift from S2 to S1.
D. / move from point x to point y.
26. / When economists say that the supply for a product has increased, they mean that the
A. / supply curve has shifted to the right.
B. / product has become particularly scarce for some reason.
C. / product has become more expensive and thus consumers are buying less of it.
D. / supply curve has shifted to the left.
27. / Use the figure below to answer the following question.

An increase in price, other factors constant, would cause a change from
A. / point 5 to point 1.
B. / point 4 to point 5.
C. / point 1 to point 6.
D. / point 3 to point 4.
28. / Use the figure below to answer the following question.

A decrease in supply would best be reflected by a change from
A. / point 2 to point 1.
B. / point 5 to point 1.
C. / point 5 to point 2.
D. / point 3 to point 6.
29. / Use the figure below to answer the following question.

An increase in supply would best be reflected by a change from
A. / point 3 to point 4.
B. / point 2 to point 5.
C. / point 1 to point 3.
D. / point 1 to point 2.
30. / Use the figure below to answer the following question.

An increase in supply would best be reflected by a change from
A. / supply curve B to supply curve A.
B. / supply curve B to supply curve C.
C. / supply curve A to supply curve C.
D. / supply curve A to supply curve B.
31. / Use the figure below to answer the following question.

A decrease in supply would best be reflected by a change from
A. / supply curve C to supply curve B.
B. / supply curve A to supply curve C.
C. / supply curve A to supply curve B.
D. / supply curve C to supply curve A.
32. / If farmers receive a subsidy for their corn, then this would cause a
A. / rightward shift in the current supply of corn.
B. / movement up along the current supply curve of corn.
C. / leftward shift in the current supply of corn.
D. / movement down along the current supply curve of corn.
33. / If the government places a tax on each gallon of gasoline produced, then this would cause a
A. / rightward shift in the current supply of gas.
B. / movement up along the current supply curve of gas.
C. / leftward shift in the current supply of gas.
D. / movement down along the current supply curve of gas.
34. / Which would cause an increase in the supply curve of cell-phone services?
A. / a tax on cell-phone producers
B. / a subsidy to cell-phone producers
C. / an increase in price of cell-phones
D. / a decrease in price of cell-phones
35. / Use the figure below to answer the following question.

The figure above shows three supply curves for corn. Which of the following would cause the supply of corn to shift from S1to S2?
A. / a tax on corn production
B. / a subsidy for corn production
C. / an increase in the price of corn
D. / a decrease in the price of corn
36. / Use the figure below to answer the following question.

The figure above shows three supply curves for corn. Which of the following would cause the quantity of corn supplied to increase form point a to point b?
A. / a tax on corn production
B. / a subsidy for corn production
C. / an increase in the price of corn
D. / a decrease in the price of corn
37. / Use the figure below to answer the following question.

The figure above shows three supply curves for corn. Which of the following would cause the supply of corn to shift from S1to S3?
A. / a tax on corn production
B. / a subsidy for corn production
C. / an increase in the price of corn
D. / a decrease in the price of corn
38. / Use the figure below to answer the following question.

The figure above shows three supply curves for corn. Which of the following would cause the quantity of corn supplied to decrease from point b to point a?
A. / a tax on corn production
B. / a subsidy for corn production
C. / an increase in the price of corn
D. / a decrease in the price of corn
39. / If a tax is placed on the production of good X, this will shift the
A. / supply curve for X to the left.
B. / supply curve for X to the right.
C. / demand curve for X to the left.
D. / demand curve for X to the right.
40. / If a subsidy is provided for the production of good X, this will shift the:
A. / supply curve for X to the left.
B. / supply curve for X to the right.
C. / demand curve for X to the left.
D. / demand curve for X to the right.
41. / Use the figure below to answer the following question.

The figure shows three supply curves for apples. If you observe the supply of apples shift from S1to S3, which of the following could be responsible for this shift?
A. / Apple producers are willing to sell more at every price.
B. / The producers of apples now receive a subsidy.
C. / The producers of apples now must pay a tax.
D. / Apple production has increased.
42. / Suppose that a more efficient way to produce a good is discovered, thus lowering production costs for the good. This will cause a(n)
A. / increase in supply.
B. / decrease in supply.
C. / increase in quantity supplied.
D. / decrease in quantity supplied.
43. / Which would cause an increase in the supply curve of cell-phone services?
A. / a decrease in the wages of phone-company workers
B. / an increase in the price of cell-phone services
C. / an increase in the taxes paid by cell-phone service providers
D. / a decrease in a subsidy given to cell-phone service providers
44. / Use the figure below to answer the following question.

The figure above shows three supply curves for corn. Which of the following would cause the supply of corn to shift from S1to S2?
A. / an increase in the price of fertilizer
B. / a change in consumer tastes away from cornbread
C. / a decrease in consumer incomes, assuming corn is a normal good
D. / the development of a more effective insecticide against corn rootworm
45. / Use the figure below to answer the following question.

The diagram shows three supply curves for corn. Which of the following would cause the supply of corn to shift from S1 to S3?
A. / a decrease in the cost of equipment used in corn farming
B. / an increase in the cost of equipment used in corn farming
C. / a decrease in the price of corn
D. / an increase in the number of acres of farmland allocated to corn
46. / Use the figure below to answer the following question.

The figure shows three supply curves for corn. Which of the following would cause the supply of corn to shift from S1to S2?
A. / an increase in the price of water
B. / a new tax on corn production
C. / a decrease in the price of water
D. / an increase in the price of corn
47. / Use the figure below to answer the following question.

The diagram shows three supply curves for corn. Which of the following would cause the supply of corn to shift from S1 to S3?
A. / a new genetically modified corn seed that is resistant to drought
B. / a new bacteria that destroys corn crops
C. / a decrease in the price of corn
D. / an increase in the number of acres of farmland allocated to corn
48. / An improvement in production technology will
A. / increase equilibrium price.
B. / shift the supply curve to the left.
C. / shift the supply curve to the right.
D. / shift the demand curve to the left.
49. / Because of unseasonably cold weather, the supply of oranges has substantially decreased. This statement indicates the
A. / demand for oranges will necessarily rise.
B. / equilibrium quantity of oranges will rise.
C. / amount of oranges that will be available at various prices has declined.
D. / price of oranges will fall.
50. / Other things equal, if the price of a key resource used to produce product X falls, the product
A. / supply curve of X will shift to the right.
B. / demand curve of X will shift to the right.
C. / supply curve of X will shift to the left.
D. / supply curve of X will not shift.
51. / Because of the significant snow fall in the plains this year, the supply of fertilizer to Washington State's apple farmers substantially decreased. This statement indicates the
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A. / demand for apples will necessarily rise.
B. / price of apples has decreased.
C. / amount of apples that will be available at various prices has declined.
D. / price of apples will necessarily rise.
52. / Which one of the following is not assumed to be constant when the supply curve for a product is drawn?
A. / price of the product
B. / state of technology
C. / number of producers
D. / price of inputs used to make the product
53. / Farmers withholding some of their current corn harvest from the market because they anticipate a higher price of corn in the near future would cause a
A. / rightward shift in the current supply of corn.
B. / movement up along the current supply curve of corn.
C. / leftward shift in the current supply of corn.
D. / movement down along the current supply curve of corn.
54. / Farmers selling some of their soybeans in storage because they anticipate a lower price of soybeans in the near future would cause a
A. / rightward shift in the current supply of soybeans.
B. / movement up along the current supply curve of soybeans.
C. / leftward shift in the current supply of soybeans.
D. / movement down along the current supply curve of soybeans.
55. / Use the figure below to answer the following question.

The diagram above shows three supply curves for corn. A movement from point a to point b is caused by a change in the
A. / price of resources used to produce corn.
B. / number of corn farmers.
C. / price of corn in the market.
D. / technology of corn farming.
56. / Use the figure below to answer the following question.

The diagram shows three supply curves for corn. Which of the following would cause the supply of corn to shift from S1 to S3?
A. / a decrease in the price of resources used to produce corn
B. / an increase in the number of corn farmers
C. / price of corn in the market
D. / a decrease in the number of corn farmers
57. / Use the figure below to answer the following question.

The diagram shows three supply curves for apples today. Which of the following would cause the supply of apples to shift from S1 to S3?
A. / expectations of higher apple prices in the future
B. / expectations of lower apple prices in the future
C. / price of apples in the market
D. / an increase in the number of corn farmers
58. / Use the figure below to answer the following question.

The diagram shows three supply curves for cars today. Which of the following would cause the supply of cars to shift from S1 to S2?
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A. / expectations of higher car prices in the future
B. / expectations of lower car prices in the future
C. / price of cars in the market
D. / a decrease in the number of car producers
59. / A leftward shift of a product supply curve might be caused by
A. / an improvement in the relevant technique of production.
B. / a decline in the prices of needed inputs.
C. / an increase in consumer incomes.
D. / some firms leaving an industry.
60. / Suppose that corn prices rise significantly. If farmers expect the price of corn to continue rising relative to other crops, then we would expect
A. / the supply of ethanol, a corn-based product, to increase in the future.
B. / consumer demand for corn to fall in the future.
C. / the future supply to increase as farmers plant more corn.
D. / the future supply to fall as farmers plant more of other crops.
61. / Which one of the following would not affect the position of the supply curve for cranberries?
A. / popularity of cranberry drinks
B. / the number of sellers in the market
C. / cost of fertilizers for cranberry production
D. / development of a new pest control for cranberries

Supply Key