Supply Curve Quiz

Fill in the blanks: A change in supply (a)   the supply curve. A change in quantity supplied ​ (b)   a supply curve.

• shifts
• is movement along

An increase in Supply shifts the supply curve (a)   , and at any given price suppliers are willing to supply (b)   .

• right
• more
• No Change

• left
• less

Because of the pandemic, consumers stop going to gyms and cancel their memberships in record numbers. Consequently, the price of gym memberships fall.

• Movement along a fixed supply curve

• Shift in the supply curve.

The government introduces a new tax on gyms to generate revenue and consequently the prices of gym memberships increase.

• Movement along a fixed supply curve

• Shift in the supply curve.

When the price of a good increases, the quantity supplied _______.

• decreases

• increases

• stays the same

• cannot be determined

Imposing a tax on a market will cause the supply curve in that market to _______.

• Shift to the right

• Shift to the left

• Stay the same but quantity supplied increases

• Stay the same but quantity supplied decreases

Suppose a new technology in farming means that growing wheat requires less fertilizer. This will cause the supply curve for wheat to _________.

• Shift to the right

• Shift to the left

• Stay the same but quantity supplied increases

• Stay the same but quantity supplied decreases

Government provides subsidies to firms involved in vaccine production. Consider the supply curve for COVID-19 vaccines. What happens?

• The supply increases.

• The supply decreases.

• The supply remains constant.

• The supply becomes unpredictable.

Answer explanation

A subsidy from the government will lower production costs. This will shift the supply curve for vaccines to the right.

New COVID-19 safety rules reduce the productivity of hairdressers. Consider the supply curve for haircuts. What happens?

• The supply curve shifts to the right.

• The supply curve shifts to the left.

• The supply curve remains unchanged.

• The supply curve becomes vertical.

Answer explanation

A decrease in productivity raises production costs for hairdressers. This will cause the supply curve to shift to the left.

The price of bicycles increases due to a shift in consumer preferences. Consider the supply curve for bicycles. What happens?

• The supply curve shifts to the right.

• The supply curve shifts to the left.

• The supply curve remains unchanged.

• The supply curve becomes vertical.

Answer explanation

The example only describes a change in price. Therefore, the supply curve does not shift and the quantity supplied increases.