An increase in the supply of the product implies:
a. producers will now charge a higher price for a given quantity of output.
b. the supply curve will shift to the left.
c. some producers are dropping out of this market.
d. producers will now charge a lower price for a given quantity of output.
e. the price of this product has increased.
QUESTION 2An increase in the number of producers will:
a. increase the market supply, because the price will rise.
b. increase the market supply only when 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 each supplier has an identical supply curve.
e. decrease the market supply, because firms compete with each other and each firm will supply more.
QUESTION 3Which of the following events would increase the supply of tomatoes?
a. The introduction of mechanized tomato pickers, which raises the cost of production.
b. An increase in wages for the tomato pickers.
c. A decrease in the cost of fertilizers for the tomato plants.
d. Unseasonably hot, dry weather in the tomato-growing regions of the nation.
e. A decrease in the price of pasta products.
QUESTION 4A decrease in supply means that:
a. demand will increase by the same amount.
b. the quantity demanded will increase.
c. there is a movement down and to the left along the supply curve.
d. the quantity supplied at every price will decrease.
e. the supply curve will shift out and to the right.
QUESTION 5Which of the following will reduce the supply of motorcycles?
a. An increase in the population age 16 to 35, the primary consumers of motorcycles.
b. An increase in taxes imposed on motorcycle producers.
c. A technological improvement reducing the production costs of motorcycles.
d. A government study that reveals motorcycle riders, on average, live 10 years longer than those who don't ride motorcycles.
QUESTION 6Which of the following would increase the supply of laptop computers?
a. Higher wage rates for the workers that produce laptop computers.
b. A technological improvement that lowers the cost of producing laptop computers.
c. An increase in the price of computer chips used to produce laptop computers.
d. All of these.
QUESTION 7If the United Auto Workers union can obtain a substantial wage increase for auto workers, there will be a(n):
a. decrease in the supply of automobiles, which is a shift to the right of the supply curve.
b. decrease in the supply of automobiles, which is a shift to the left of the supply curve.
c. increase in the supply of automobiles, which is a shift to the right of the supply curve.
d. increase in the supply of automobiles, which is a shift to the left of the supply curve.
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