Chapter 5 Supply Review

The diagram represents a(n)

• increase in supply
• decrease in supply
• change in quantity supplied
• none of the above

More sellers enter the "Pizza" market. What happens to the total number of pizzas supplied?

• they decrease (curve shifts left)
• they increase (curve shits right)
• they stay the same (the curve stays)

What happens to the supply of tobacco products when the government raises the excise tax on cigarettes?

• amount supplied increases (shifts to the right)
• amount supplied decreases (shifts to the left)
• ill not be affected

What causes movement along the supply curve?

• Taxes, Subsidies, Regulations, cost of inputs
• ONLY a change in price

The price of wheat rises due to a bad drought. What happens to the supply of wheat like bread and pasta?

• supply increases
• supply decreases
• supply is not affected

The assembly line is used by the Ford Motor company (a change in technology) to produce more cars. What happens to the supply of cars?

• it will increase
• it will decrease
• remain unchanged

The law of supply states that as the price increases then 

• supply demanded increases
• quantity supplied decreases
• supply increases
• supply decreases

Which of these is a fixed cost for a store?

• short-term workers
• rent
• advertising
• inventory

a measure of the way a quantity supplied reacts to a change in price

• elasticity of supply
• supply
• elasticity of demand
• profit

a government payment that supports a business

• mortgage 
• personal loan
• income tax
• subsidy