Non-price determinant of Supply

Which of the following leads to an decrease in supply?

• an increase in the cost of raw materials

• diminishing marginal returns

• a decrease in the cost of raw materials

• a change in the law of supply

Which of these do the producers of an item hope to achieve when adopting new technology?

• a shift of the supply curve for that item to the left

• repeal of the subsidy for that item

• inelasticity of supply of that item

• a shift of the supply curve for that item to the right

What affect do excise taxes on production usually have on the supply curve?

• decreases supply, supply curve shifts left

• increases supply, supply curve shifts left

• decreases supply, supply curve shifts right

• increases supply, supply curve shifts right

All of the following can change the supply curve EXCEPT

• cost of labor

• change in demand for the product

• xpectation that prices are about to increase

• # of sellers

Identify the correct determinant of supply:

Example: If the cost of electricity used to power an automotive factories falls, the supply of cars in the market increases

• Cost of resources

• Number of sellers

• Change in expectations

• Change in technology

Identify the correct determinant of supply.

Example: As the demand for DVDs decreased due to consumer preference for streaming movies, the market price for DVDs fell. This lower market price caused sellers to leave the DVD market and supply decreased.

• Change in Cost of Factors of Production

• Change in number of sellers

• Change in income

• Change in expectations

Identify the correct determinant of supply.

Example: If airlines expect prices for airline tickets to fall in September when families are less likely to travel due the school calendar, they will supply more during the summer months when they can charge higher fares.

• Change in Cost of Factors of Production

• Change in number of sellers

• Expectations

• Change in technology

Labor costs are rising through the roof! Minimum wages are now at $25 an hour. This means even the basic item will need to cost more to keep up with rising costs. What determinant of supply does this most relate to?

• Change in Technology

• Change in Number of Sellers in the Market

• Change in Cost of Factors of Production

• Change in Price Expectations

A brand new machine cooks, cleans, and never messes up a fast food order. This means we can sell more fast food than ever before, leading to producers cutting cost of fast food. Which supply factor does this most likely relate to?

• Change in Technology

• Change in Number of Sellers in the Market

• Change in Price Expectations

• Change in Cost of Factors of Production

Which type of supply is illustrated by the picture?

• Competitive supply

• Joint supply