Review of Supply

When production costs decrease, what happens to the supply curve?

• shifts to the right

• shifts to the left

• remains unchanged

• may shift in either direction

A decrease in supply refers to:

• a rightward shift of the supply curve.

• a leftward shift of the supply curve.

• an upward movement along the supply curve.

• a downward movement along the supply curve.

Producer surplus is:

• the difference between the market price and the minimum price at which producers are willing to sell a good.

• the amount at which producers are willing to sell a good.

• the amount at which producers sell a good.

• the amount at which producers are willing to sell a good plus the amount at which they sell it.

If the government decides to levy a tax on a good, this is likely to

• increase supply.

• decrease supply

• have no impact on supply.

• change supply in some way, but we do not know what to expect.

Consider a typical supply curve. As the price rises, the quantity supplied will _______.

• decrease

• increase

• not change

What is being illustrated in the image?

• Decrease in supply

• Increase in supply

Much of the tea in the U.K. is imported from India. If wages for Indian tea workers rose, thus increasing input costs, how would this effect supply of tea in the U.K.?

• Supply would increase

• Supply would Decrease

• NO change in supply

• who knows what would happen.

In the market for corn, if the weather is unusually bad, then it is likely that the supply of corn will

• increase.

• decrease.

• not change.

The diagram represents a(n)

• increase in supply

• decrease in supply

• change in quantity supplied

• none of the above

An increase in the price of oil generally increases the

• supply of oil.

• quantity of oil supplied.

• demand for oil.

• quantity of oil demanded.