Supply Shifts and Their Effects

The video tutorial explains how supply shifts on a supply and demand graph. An increase in supply is depicted as a downward or rightward shift, while a decrease is an upward or leftward shift. The tutorial emphasizes holding price constant to observe changes in quantity supplied. It also discusses determinants of supply changes, such as input prices, technology, and the number of firms. The video concludes with a summary of supply curve shift directions.

How is an increase in supply represented on a supply and demand graph?

• As an upward shift

• As a leftward shift

• As a downward or rightward shift

• As a vertical shift

If the price remains constant, how does an increase in supply affect the quantity supplied?

• The quantity supplied increases

• The quantity supplied decreases

• The quantity supplied remains the same

• The quantity supplied becomes zero

What happens to the supply curve when there is a decrease in supply?

• It shifts downward

• It remains unchanged

• It shifts upward

• It shifts rightward

Which of the following is a determinant that can cause an increase in supply?

• Increase in the price of a substitute

• Increase in the number of firms

• Decrease in productivity

• Increase in input prices

How does a decrease in the price of a substitute affect supply?

• It has no effect on supply

• It increases supply

• It decreases supply

• It causes supply to fluctuate

What is the effect of an expected future price drop on current supply?

• It has no effect on current supply

• It increases current supply

• It causes current supply to fluctuate

• It decreases current supply

Which direction does the supply curve shift when there is an increase in supply?

• Upward

• No shift

• Leftward

• Downward

What is the counterintuitive aspect of supply shifts?

• An increase in supply is an upward shift

• An increase in supply is a downward shift

• Supply shifts have no direction

• A decrease in supply is a downward shift

Which of the following factors does NOT cause an increase in supply?

• Decrease in the number of firms

• Decrease in the price of a substitute

• Increase in productivity

• Decrease in input prices