Question : 3.4   Supply in Product / Output Markets 1) According to the : 1381339

 

3.4   Supply in Product / Output Markets

 

1) According to the law of ________, there is a positive relationship between price and ________.

A) supply; the change in supply

B) supply; the quantity supplied

C) demand; quantity demanded

D) demand; change in demand

 

2) The price of circuit boards used in the manufacturing of LCD televisions has fallen. This will lead to ________ LCD televisions.

A) an increase in the supply of

B) a decrease in the supply of

C) an increase in the quantity supplied of

D) a decrease in the quantity supplied of

 

3) If the price of spinach decreases, there will be ________ of spinach enchiladas.

A) an increase in the supply

B) a decrease in the supply

C) an increase in the quantity supplied

D) a decrease in the quantity supplied

 

4) An electronics manufacturer can produce either MP3 players or cell phones. As the result of a decrease in the price of cell phones, the firm produces more MP3 players and fewer cell phones. An economist would explain this by saying

A) the supply of cell phones increased and the supply of MP3 players decreased.

B) there has been an increase in the quantity supplied of cell phones and a decrease in the quantity supplied of MP3 players.

C) there has been a decrease in the quantity supplied of cell phones and an increase in the supply of MP3 players.

D) the supply of cell phones increased and the quantity supplied of MP3 players decreased.

Refer to the information provided in Figure 3.14 below to answer the questions that follow.

 

 

Figure 3.14

 

5) Refer to Figure 3.14. An increase in the wage rate of pizza makers will cause a movement from Point B on supply curve S2 to

A) Point A on supply curve S2.

B) Point C on supply curve S2.

C) supply curve S3.

D) supply curve S1.

 

6) Refer to Figure 3.14. A decrease in supply is represented by the movement from

A) S2 to S3.

B) S2 to S1.

C) Point B to Point A along supply curve S2.

D) Point B to Point C along supply curve S2.

7) Refer to Figure 3.14. An increase in quantity supplied is represented by a movement from

A) S2 to S3.

B) S2 to S1.

C) Point B to Point A along supply curve S2.

D) Point B to Point C along supply curve S2.

 

8) Refer to Figure 3.14. A decrease in the price of pizza sauce will cause a movement from Point B on supply curve S2 to

A) supply curve S3.

B) supply curve S1.

C) Point A on supply curve S2.

D) Point C on supply curve S2.

 

9) Refer to Figure 3.14. A movement from Point C to Point B on supply curve S2 would be caused by a(n)

A) decrease in the price of pizza.

B) decrease in the price of pizza dough.

C) increase in the demand for pizza.

D) increase in the price of hamburgers, assuming hamburgers are a substitute for pizza.

Refer to the information provided in Figure 3.15 below to answer the questions that follow.

 

 

Figure 3.15

 

10) Refer to Figure 3.15. A decrease in the wage rate of gardenburger makers will cause a movement from Point B on supply curve S2 to

A) Point A on supply curve S2.

B) Point C on supply curve S2.

C) supply curve S3.

D) supply curve S1.

 

 

 

11) Refer to Figure 3.15. An increase in supply is represented by the movement from

A) S2 to S3.

B) S2 to S1.

C) Point B to Point A along supply curve S2.

D) Point B to Point C along supply curve S2.

12) Refer to Figure 3.15. A decrease in quantity supplied is represented by a movement from

A) S2 to S1.

B) S2 to S3.

C) Point B to Point A along supply curve S2.

D) Point B to Point C along supply curve S2.

 

13) Refer to Figure 3.15. An increase in the price of tomatoes (an input for gardenburgers) will cause a movement from Point B on supply curve S2 to

A) supply curve S3.

B) supply curve S1.

C) Point A on supply curve S2.

D) Point C on supply curve S2.

 

14) Refer to Figure 3.15. A movement from Point A to Point B on supply curve S2 would be caused by a(n)

A) increase in the price of gardenburgers.

B) decrease in the demand for gardenburgers.

C) increase in the price of tomatoes.

D) increase in the price of hamburgers, assuming hamburgers are a substitute for pizza.

 

15) The change in the ________ of a good leads to a change in ________, which leads to a ________.

A) price; quantity supplied; movement along a supply curve

B) quantity; supply; change in demand

C) supply; demand; change in price

D) demand; quantity demanded; supply