Multiple Choice
1. An upward-sloping supply curve shows that
a. Buyers are willing to pay more for particularly scarce products.
b. Suppliers expand production as the product price falls.
c. Suppliers are willing to increase production of their goods if they receive higher prices for them.
d. Buyers are willing to buy more as the product price falls.
2. Along a supply curve,
a. Supply changes as price changes.
b. Quantity supplied changes as price changes.
c. Supply changes as technology changes.
d. Quantity supplied changes as technology changes.
3. All of the following factors will affect the supply of shoes except one. Which will not affect the supply of shoes?
a. Higher wages for shoe factory workers
b. Higher prices for leather
c. A technological improvement that reduces waste of leather and other raw materials in shoe production
d. An increase in consumer income
4. The difference between a change in quantity supplied and a change in supply is that a change in
a. Quantity supplied is caused by a change in a good’s own price, while a change in supply is caused by a change in some other variable, such as input prices, prices of related goods, expectations, or taxes.
b. Supply is caused by a change in a good’s own price, while a change in the quantity supplied is caused by a change in some other variable, such as input prices, prices of related goods, expectations, or taxes.
c. Quantity supplied is a change in the amount people want to sell, while a change in supply is a change in the amount they actually sell.
d. Supply and a change in the quantity supplied are the same thing.
5. Antonio’s makes the greatest pizza and delivers it hot to all the dorms around campus. Last week Antonio’s supplier of pepperoni informed him of a 25% increase in price. Which variable determining the position of the supply curve has changed, and what effect does it have on supply?
a. Future expectations; supply decreases
b. Future expectations; supply increases
c. Input prices; supply decreases
d. Input prices; supply increases
e. Technology; supply increases
6. Which of the following is not a determinant of supply?
a. Input prices
b. Technology
c. Tastes
d. Expectations
e. The prices of substitutes in production
7. If incomes are rising, in the market for an inferior good,
a. Demand will rise.
b. demand will fall.
c. Supply will rise.
d. Supply will fall.
8. If a farmer were choosing between growing wheat on his own land and growing soybeans on his own land,
a. An increase in the price of soybeans would increase his supply of soybeans.
b. An increase in the price of soybeans would increase his supply of wheat.
c. An increase in the price of soybeans would decrease his supply of soybeans.
d. An increase in the price of soybeans would decrease his supply of wheat.
e. An increase in the price of soybeans would not change his supply of either wheat or soybeans.
9. A supply curve illustrates a(n) ________ relationship between _________ and _________.
a. Direct; price; supply
b. Direct; price; quantity demanded
c. Direct; price; quantity supplied
d. Introverted; price; quantity demanded
e. Inverse; price; quantity supplied
10. A leftward shift in supply could be caused by
a. An improvement in productive technology.
b. A decrease in income.
c. Some firms leaving the industry.
d. A fall in the price of inputs to the industry.