Supply

Supply

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Multiple Choice

When the selling price of a good goes up, what is the relationship to the quantity supplied?

• The cost of production goes down

• The profit made on each item goes down

• It becomes practical to produce more goods

• There is no relationship between the two

Multiple Choice

Which of the following is an example of the way in which the use of technology can lower the cost of producing an item?

• the importing of fresh vegetables from South America rather than using canned vegetables

• the making of breads and pastries in local shops rather than large bakeries

• the use of e-mail to replace slower postal mail

• the delivery costs of gasoline to the consumer by diesel trucks

Multiple Choice

What is the effect of import restrictions on prices?

• They cause prices to drop

• They cause prices to rise

• They often cause prices to rise steeply and then drop

• They usually do not have any effect on price

Multiple Choice

A decrease in the number of televisions produced in a country in response to a fall in price demonstrates

• the law of supply

• the influence of supply determinants

• a shift in the supply curve

• a change in demand for televisions

Multiple Choice

Which of the following would most likely cause the supply curve to shift to the right in the supply of doctors who practice general medicine rather than a specialty?

• An increase in the salaries of doctors who specialize in a particular field

• An increase in the cost of attending medical school

• An increase in government subsidies to students who want to practice general medicine

• A decrease in the number of students admitted to medical schools

Multiple Choice

Which best explains why supply curves slope upward?

• Supply and price have an inverse relationship

• Prices have a positive relationship with supply

• Determinants of supply vary demanding on the good or service

• Non-price factors determine the shape of the supply curve