1.

(01.05 MC) Which of the following would explain a leftward shift in the supply curve for a product? (5 points)

	A number of new producers enter the market.
	The price decrease for an alternative good the same producers can provide.
	Producers are able to charge higher prices for the good.
	There is an improvement in the machinery used to make the product.
	A new set of regulations that suppliers must follow for making the product begin to be enforced.

2.

(01.05 LC) As the price increases, the quantity supplied will also increase. This ______ relationship describes the _________. (5 points)

	direct; law of demand
	inverse; law of demand
	indirect; law of supply
	inverse; law of supply
	direct; law of supply

3.

(01.05 HC)

Which of the following could explain the sequence shown above? (5 points)

	Suppliers expect demand for Z is about to go up and then learn that they are wrong.
	Suppliers shift to the production of another good instead of Z, and then consumer tastes shift toward a greater preference for Z.
	Resource costs go up for making Z, which causes a number of suppliers to leave the market.
	Suppliers raise the price for Z and then realize they overestimated demand and lower the price much more.
	Suppliers lose a subsidy that the government had been giving, and then the cost of an input for Z decreases by more than the value of the subsidy.

4.

(01.05 MC)