The price of a good will fall when:
a. there is a shortage of the good. b. there is a surplus of the good.
c. demand for the good increases. d. the supply of the good decreases.
QUESTION 2When there is a surplus of a product in a market the:
a. price will rise.
b. price must be above the equilibrium price.
c. producers will expand output and sales will rise.
d. price must be below the equilibrium price.
QUESTION 3Which of the following will increase the supply of a good?
a. An increase in the price of another good that producers could produce.
b. A lower price paid for resources used in the production of the good.
c. A decrease in the number of sellers.
d. An increase in taxes paid to the government by producers.
QUESTION 4An improvement in a firm's technology that improves productivity results in a(n):
a. leftward shift of the supply curve.
b. upward movement along the supply curve.
c. willingness to supply a larger quantity than before at any given price.
d. downward movement along the supply curve.
QUESTION 5Assuming that wheat and corn can both be grown on the same type of land, a decrease in the price of corn, other things being equal, will cause a(n):
a. downward movement along the supply curve for wheat.
b. upward movement along the supply curve for wheat.
c. rightward shift in the supply curve for wheat.
d. leftward shift in the supply curve for wheat.
QUESTION 6Assume Congress passes a new tax of 2.00 per pack on cigarettes. The effect on the supply curve is a(n):
a. decrease in supply. b. increase in supply.
c. decrease in quantity supplied. d. increase in quantity supplied.
QUESTION 7An advance in technology results in:
a. suppliers offering a larger quantity than before at each given price.
b. suppliers offering the same quantity as before at a lower price.
c. a rightward shift of the supply curve.
d. an increase in supply.
e. all of these.
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