Larger quantities of any good will be supplied at higher prices because
a. consumers will be more satisfied
b. higher prices attract resources from other uses
c. people are naturally lazy and have to be bribed to give up their leisure
d. price and quantity supplied are inversely related
e. of the law of decreasing opportunity cost
QUESTION 2Which of the following explains the relationship between price and the quantity supplied?
a. When expanding output, firms will incur greater total costs.
b. As the price of a commodity falls, producers will find it more profitable to use higher-priced inputs in their production process.
c. As a result of rising production costs, firms can increase profits by expanding output only if the price of output increases.
d. To expand output, firms must hire more resources, which are always of poorer quality.
e. Consumers want more at lower prices.
QUESTION 3Producers are willing and able to offer greater quantities for sale at higher prices because
a. they have the incentive to pay the increasing opportunity cost of resources to attract them from alternative uses
b. they will decrease their profits by expanding production at higher prices
c. the government orders them to do so
d. lower prices attract new firms, which have higher costs of production
e. they hire superior quality, higher-priced resources as production expands
QUESTION 4Which of the following is the reason supply curves typically slope upward?
a. Opportunity cost of production increases as quantity supplied increases.
b. Supply increases as opportunity cost decreases.
c. Price increases as supply decreases.
d. Quantity supplied is unrelated to price.
e. The income and substitution effects of a price change.
QUESTION 5Supply curves generally slope upward because of all of the following reasons except one. Which is the exception?
a. Producers are willing to offer more of a good at higher prices.
b. A higher price attracts resources from less-valued uses.
c. Producers must be compensated for the rising opportunity cost of additional output.
d. Producers have a greater incentive to sell more as the price increases.
e. The price of a good usually must fall to induce an increase in quantity supplied.
QUESTION 6The market supply curve of a particular product indicates the total quantities
a. that are actually sold during a given time period
b. that buyers are willing to purchase at alternative prices
c. that sellers are willing and able to offer at alternative prices
d. that sellers are willing to offer for sale
e. of complements offered for sale
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