Question : 3.2   The Supply Side of the Market 1) A supply schedule A) : 1267052

3.2   The Supply Side of the Market

1) A supply schedule

A) is a table that shows the relationship between the price of a product and the quantity of the product supplied.

B) is a curve that shows the relationship between the price of a product and the quantity of the product supplied.

C) is the relationship between the supply of a good and the cost of producing the good. 

D) is a table that shows the relationship between the price of a product and the quantity of the product that producers and consumers are willing to exchange.

2) If in the market for peaches, the supply curve has shifted to the left,

A) the supply of peaches has increased.

B) the supply of peaches has decreased.

C) the quantity of peaches supplied has increased.

D) the quantity of peaches supplied has decreased.

3) If, in the market for oranges, the supply has increased then

A) the supply curve for oranges has shifted to the right.

B) the supply curve for oranges has shifted to the left.

C) there has been a movement upwards along the supply curve for oranges.

D) there has been a movement downwards along the supply curve for oranges.

4) Last year, the Pottery Palace supplied 8,000 ceramic pots at $40 each. This year, the company supplied the same quantity of ceramic pots at $55 each. Based on this evidence, The Pottery Palace has experienced

A) a decrease in supply.

B) an increase in supply.

C) an increase in the quantity supplied.

D) a decrease in the quantity supplied.

5) What is the difference between an “increase in supply” and an “increase in quantity supplied”?

A) There is no difference between the two terms; they both refer to a shift of the supply curve.

B) There is no difference between the two terms; they both refer to a movement along a given supply curve.

C) An “increase in supply” means the supply curve has shifted to the right while an “increase in quantity supplied” means at any given price supply has increased.

D) An “increase in supply” means the supply curve has shifted to the right while an “increase in quantity supplied” refers to a movement along a given supply curve in response to an increase in price.

6) One would speak of a change in the quantity of a good supplied, rather than a change in supply, if

A) supplier expectations about future prices change.

B) the price of the good changes.

C) the cost of producing the good changes.

D) prices of substitutes in production change.

7) Which of the following would cause a decrease in the supply of milk?

A) an increase in the price of cookies (assuming that milk and cookies are complements)

B) a decrease in the price of milk

C) an increase the price of a product that producers sell instead of milk

D) an increase in the number of firms that produce milk

8) In October, market analysts predict that the price of platinum will fall in November.  What happens in the platinum market in October, holding everything else constant?

A) The supply curve shifts to the right.

B) The supply curve shifts to the left.

C) The quantity demanded and the quantity supplied of platinum increase.

D) The demand curve shifts to the right.

Figure 3-2

9) Refer to Figure 3-2. An increase in price of inputs would be represented by a movement from

A) A to B.

B) B to A.

C) S1 to S2.

D) S2 to S1.

10) Refer to Figure 3-2. An increase in the number of firms in the market would be represented by a movement from

A) A to B.

B) B to A.

C) S1 to S2.

D) S2 to S1.