A steel tariff increases the price of steel.What effect will this have on the supply of cars?

• A.Increase in supply (supply curve shifts right).
• B.Decrease in supply (supply curve shifts left).
• C.Movement along the supply curve, but the supply curve does not shift.
• D.No effect on supply.

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Question 2 of 5

1 Points

Improvements in robotics enable car manufacturers to produce more cars using fewer resources. What effect will this have on the supply of cars?

• A.Increase in supply (supply curve shifts right).
• B.Decrease in supply (supply curve shifts left).
• C.Movement along the supply curve, but the supply curve does not shift.
• D.No effect on supply.

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Question 3 of 5

1 Points

Consumer concern about the negative effects of automobile emissions on the environment reduces demandfor cars, causing the price of cars to fall.What effect will this haveon the supply of cars?

• A.Increase in supply (supply curve shifts right).
• B.Decrease in supply (supply curve shifts left).
• C.Movement along the supply curve, but the supply curve does not shift.
• D.No effect on supply.

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Question 4 of 5

1 Points

The graph in the figure below shows the weekly market for pizza in a small town.Which of the following events will occur at a price of $10?

• A.No pizza supplied
• B.Excess supply
• C.Equilibrium
• D.No pizza demanded
• E.Excess demand

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Question 5 of 5

1 Points

Suppose an economic boom causes incomes to increase. This will cause:

• A.An increase in supply of smart phones (supply curve shifts right); the equilibrium price of smart phones will fall and the equilibrium quantity of smart phones traded will rise.
• B.A decrease in supply of smart phones (supply curve shifts left); the equilibrium price of smart phones will rise and the equilibrium quantity of smart phones traded will fall.
• C.Increase in demand for smart phones (demand curve shifts right); both the equilibrium price of smart phones and the equilibrium quantity of smart phones traded will rise.
• D.Decrease in demand for smart phones (demand curve shifts left); both the equilibrium price of smart phones and the equilibrium quantity of smart phones traded will fall.

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