SUPPLY

A increase in product price will cause:

• QS to decrease

• S to increase

• QS to increase

• S to decrease

A leftward shift of the supply curve might be caused by:

• decrease in resource cost.

• more firms entering an industry.

• decrease in subsidies.

• a decrease in consumer incomes.

A surplus can be expected whenever:

• quantity demanded is greater than quantity supplied.

• quantity supplied is greater than quantity demanded.

• quantity supplied and quantity demanded are equal to the equilibrium

According to the Law of Supply, which of these would happen to an item as its price rose?

• Producers would make less of it.

• Producers would make more of it.

• Producers would increase the price even more.

• Producers would lower the price on similar items.

An increase in taxes will shift the supply curve for steel ___.

• to the right

• to the left

• not at all

• will cause demand to decrease

An “increase in the quantity supplied [QS]” means a:

• rightward shift of the supply curve.

• movement down along the supply curve

• movement up along the supply curve.

• leftward shift of the supply curve.

In moving along a supply curve, what is changing?

• income

• taste

• price

• resource cost

Producers consider taxes a part of_ .

• resource cost

• investment

• profit

• revenue

What will cause a decrease in supply for “oranges”?

• decrease in the price of oranges

• an increase in the price of oranges

• increase in the cost of labor producing oranges

What will cause an increase in QS for “oil”?

• decrease in the price of oil

• increase in consumer taste for oil

• increase in market size(# of consumers)

• an increase in the price of oil