Podcast
Questions and Answers
What would happen to the supply of coffee beans if the price of fertilizer (an input) increased drastically?
What would happen to the supply of coffee beans if the price of fertilizer (an input) increased drastically?
- The supply of coffee beans would increase.
- The supply curve would not shift.
- The supply curve would shift to the left. (correct)
- The supply curve would shift to the right.
Imagine that a new, more efficient processing technique for manufacturing shoes is introduced. How would this impact the supply of shoes?
Imagine that a new, more efficient processing technique for manufacturing shoes is introduced. How would this impact the supply of shoes?
- The supply curve would become steeper.
- The supply curve would remain unchanged.
- The supply curve would shift to the right. (correct)
- The supply curve would shift to the left.
A government decides to impose an excise tax on the production of a popular beverage. Which statement accurately describes the impact on the beverage's supply?
A government decides to impose an excise tax on the production of a popular beverage. Which statement accurately describes the impact on the beverage's supply?
- The excise tax would increase the number of suppliers, thus increasing supply.
- The excise tax would lead to a decrease in supply, shifting the supply curve to the left. (correct)
- The excise tax would not affect the supply of the beverage.
- The excise tax would lead to an increase in demand, causing the supply curve to shift to the right.
The government introduces subsidies for the production of solar panels. What is the most likely effect on the supply of solar panels?
The government introduces subsidies for the production of solar panels. What is the most likely effect on the supply of solar panels?
If producers expect the price of a certain type of fruit to drastically increase in the near future, how would their actions likely impact the current supply?
If producers expect the price of a certain type of fruit to drastically increase in the near future, how would their actions likely impact the current supply?
According to the law of supply, what happens to production as prices increase?
According to the law of supply, what happens to production as prices increase?
What does the term ceteris paribus mean in the context of a supply schedule?
What does the term ceteris paribus mean in the context of a supply schedule?
What is the primary motive for firms to produce goods?
What is the primary motive for firms to produce goods?
Which of the following is NOT a factor that can affect the quantity supplied of a good?
Which of the following is NOT a factor that can affect the quantity supplied of a good?
According to the Market Supply Schedule for Gobstoppers, how many boxes of Gobstoppers will be supplied if the price is $2.00?
According to the Market Supply Schedule for Gobstoppers, how many boxes of Gobstoppers will be supplied if the price is $2.00?
Flashcards
What is Supply?
What is Supply?
The amount of goods available for sale.
Law of Supply
Law of Supply
As price increases, production also increases.
Quantity Supplied
Quantity Supplied
The specific amount of a good supplied at a given price.
Supply Schedule
Supply Schedule
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Supply Curve
Supply Curve
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Shift in Supply
Shift in Supply
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Determinants of Supply Shift
Determinants of Supply Shift
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Input Costs
Input Costs
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Government Regulations
Government Regulations
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Study Notes
What is Supply?
- Supply is the amount of goods available.
Supply Schedule
- Compares variables that can change.
- Variables—Price and Quantity Supplied.
- Only considers price, not all possibilities.
- All other things are held constant, or ceteris paribus.
Law of Supply
- As price increases, so does production.
- Quantity Supplied—How much of a good is supplied at a specific price.
- Firms changing production levels + Firms entering and exiting the market = Law of Supply.
- Profit is the motive for production.
Market Supply Schedule
- Price of a box of Gobstoppers.
- $0.50 - 100
- $1.00 - 150
- $1.50 - 200
- $2.00 - 250
- $2.50 - 300
- $3.00 - 350
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Description
This quiz explores the fundamentals of supply in economics, including supply schedules and the law of supply. Understand how price changes affect the quantity supplied and the production decisions of firms. Test your knowledge of these critical concepts that define market behavior.
