Supply Determinants

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. 

• Government regulation

• Change in number of sellers

• Change in income

• Change in expectations

Which of the following is NOT a determinant of supply?

• Change in cost of production

• Technology

• Change in number of consumers

• Government regulations

When producers offer more of a good as its price increases and less as its price falls, this defines the

• law of demand

• law of supply

• change in demand

• change in supply

Increased government regulations will cause which of the following?

• the supply curve will shift to the right (increase)

• the supply curve will shift to the left (decrease)

• the quantity supplied will decrease

• the quantity supplied will increase

The government increases taxes on a business that produces candy. How would this affect the supply of candy?

• Shift right (supply increases)

• shift left (supply decreases)

• Quantity supplied increases

• Quantity supplied decreases

New technology produces coca-cola cans twice as fast. How would this affect the supply of coca-cola cans?

• Shift right (supply increases)

• shift left (supply decreases)

• quantity supplied increases

• quantity supplied decreases

Which of the following are NOT determinants of supply?

• technology

• taxes and subsidies

• input costs/costs of the factors of production (AKA productive resources)

• all of the above are determinants of supply

Which of the following is a determinant of supply that can cause the supply curve to shift to the right?

• A) Increase in production costs

• B) Improvement in technology

• C) Decrease in the number of sellers

• D) Increase in taxes

What effect does a decrease in the cost of raw materials have on the supply of a product?

• A) Supply decreases

• B) Supply remains unchanged

• C) Supply increases

• D) Supply becomes perfectly elastic

How does an increase in the number of sellers in a market affect the supply curve?

• A) The supply curve shifts to the left

• B) The supply curve shifts to the right

• C) The supply curve becomes vertical

• D) The supply curve becomes horizontal