Other things equal, the supply of index cards is likely to be affected by all of the following except one. Which is the exception?
a. the price of wood pulp used in the production of index cards
b. the technology in the index card production process
c. the price of index cards
d. the price of packaging material (a substitute in production)
e. the future price of index cards expected by producers
QUESTION 2Which of the following is not likely to cause a change in the supply of wheat?
a. a government subsidy to farmers who do not grow wheat
b. an increase in the price of soybeans
c. a decrease in the price of fertilizer
d. a fall in the price of wheat
e. producers expect product prices to rise
QUESTION 3Studies show that the supply curve for oranges has shifted. Which of the following could not explain the shift of the supply curve?
a. Weather conditions have changed.
b. The price of fertilizer has changed.
c. The wage paid to orange pickers has changed.
d. The price of oranges has changed.
e. The demand for grapefruit has changed.
QUESTION 4Which of the following will not shift the market supply curve for corn?
a. a change in the price of corn
b. a change in the price of soybeans
c. a change in the price of herbicides and pesticides
d. a change in storage technology
e. a change in the number of acres planted in corn
QUESTION 5An increase in the number of producers of a good will
a. increase the market supply because the price will rise
b. increase the market supply only if market demand increases too
c. increase the market supply because market supply is the sum of all individual supply curves
d. increase the market supply only if all suppliers have an identical supply curves
e. decrease the market supply because firms compete with each other and each firm will supply more
QUESTION 6If suppliers expect an increase in price, they will reduce the current supply of a good.
a. True
b. False
QUESTION 7As the use of DVDs becomes more widespread, we would expect all of the following except one. Which is the exception?
a. The prices of CDs will decrease.
b. The demand curve for CD players will shift leftward.
c. The supply curve of CD players will shift rightward.
d. The demand curve for CDs will shift leftward.
e. Firms will move their resources away from CD production to DVD production.
QUESTION 8Which of the following would cause an increase in the supply of wheat?
a. an increase in fertilizer costs
b. a decrease in the price of bread
c. a decrease in the price of corn
d. an increase in land prices
e. an expectation that the price of wheat will be higher next period
QUESTION 9Assume that corn and soybeans are alternatives that could be grown by most farmers. An increase in the price of corn will
a. increase the supply of corn
b. increase the supply of soybeans
c. decrease the supply of soybeans
d. decrease the supply of corn
e. have no effect on the supplies of corn and soybeans
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