Question : 61) Which of the following indicates that the law of : 1228176

 

 

61) Which of the following indicates that the law of supply applies to makers of soda?

A) An increase in the price of a soda leads to an increase in the demand for soda.

B) An increase in the price of a soda leads to an increase in the supply of soda.

C) An increase in the price of a soda leads to an increase in the quantity of soda supplied.

D) A decrease in the price of a soda leads to an increase in the quantity of soda demanded.

E) A decrease in the price of a soda leads to an increase in the supply of soda.

 

62) One reason supply curves have an upward slope is because

A) increased supply will require increased technology.

B) people will pay a higher price when less is supplied.

C) a higher price brings a greater profit, so firms want to sell more of that good.

D) to have more of the good supplied requires more firms to open.

E) None of the above answers is correct because supply curves have a downward slope.

 

63) The market supply curve is the ________ of the ________.

A) horizontal sum; individual supply curves

B) vertical sum; individual supply curves

C) horizontal sum; individual supply curves minus the market demand

D) vertical sum; individual supply curves minus the market demand

E) vertical average; of the individual supply curves

 

64) If the costs of producing pizza increase, which will occur?

A) The supply of pizza will decrease.

B) The quantity of pizzas supplied will increase as sellers try to cover their costs.

C) Pizza will cease to be produced and sold.

D) The demand curve for pizza will shift leftward when the price of a pizza increases.

E) The demand curve for pizza will shift rightward when the price of a pizza increases.

65) A rise in the price of a substitute in production for a good leads to

A) an increase in the supply of that good.

B) a decrease in the supply of that good.

C) no change in the supply of that good; instead there is a change in the quantity supplied.

D) a decrease in the quantity of that good supplied.

E) no change in either the supply or the quantity supplied of the good.

 

66) Suppose the price of leather used to produce shoes increases. The higher price of leather ________ the supply of shoes and the supply curve of shoes ________.

A) increases; shifts rightward

B) increases; shifts leftward

C) decreases; shifts rightward

D) decreases; shifts leftward

E) does not change; does not shift

 

67) An increase in the number of producers of bird seed ________ the supply of bird seed and shifts the supply curve of bird seed ________.

A) increases; rightward

B) increases; leftward

C) decreases; rightward

D) decreases; leftward

E) does not change; rightward

68) The graph illustrates the supply of sweaters. Which of the following events will increase the supply of sweaters?

A) a rise in the price of a sweater

B) a rise in the wage rate paid to the workers who make sweaters

C) a rise in the expected future price of a sweater

D) an increase in the number of sellers of sweaters

E) an increase in income if sweaters are a normal good

 

69) The graph illustrates the supply of sweaters. As the technology used to produce sweaters improves, the

A) supply of sweaters decreases and the demand for sweaters does not change.

B) supply of sweaters increases and the demand for sweaters does not change.

C) quantity of sweaters supplied increases.

D) quantity of sweaters supplied decreases.

E) supply of sweaters increases and the demand for sweaters increases.

70) An increase in the productivity of producing jeans results in

A) the quantity of jeans supplied increasing.

B) the supply of jeans increasing.

C) buyers demanding more jeans because they are now more efficiently produced.

D) buyers demanding fewer jeans because their price will fall, which signals lower quality.

E) some change but the impact on the supply of jeans is impossible to predict.

 

71) A change in the price of a good ________ its supply curve and ________ a movement along its supply curve.

A) shifts; causes

B) shifts; does not cause

C) does not shift; causes

D) does not shift; does not cause

E) None of the above because the change in the price might cause either a shift in the supply curve or a movement along the supply curve depending on the size of the change.

72) The graph illustrates the supply of sweaters. A fall in the price of sweaters brings

A) a movement along the supply curve.

B) a decrease in the quantity supplied of sweaters.

C) a shift of the supply curve.

D) Both answers A and B are correct.

E) Both answers B and C are correct.

73) The graph illustrates the supply of soda. If the price of soda rises from $0.50 a can to $1.50 a can, the quantity of soda supplied

A) increases from 0 cans to 4,000 cans a day.

B) decreases from 4,000 cans to 0 cans a day.

C) remains unchanged because the supply increases not the quantity supplied.

D) increases from 0 to 6,000 cans a day.

E) remains unchanged because the supply decreases not the quantity supplied.