Question : 3.4   Supply in Product / Output Markets 1) According to the : 1381048

 

3.4   Supply in Product / Output Markets

 

1) According to the law of supply, there is a

A) negative relationship between price and the quantity of a good supplied.

B) positive relationship between price and the quantity of a good supplied.

C) negative relationship between price and the change in supply.

D) positive relationship between price and the change in supply.

 

2) The price of hard drives used in the manufacturing of laptop computers has risen. This will lead to ________ laptop computers.

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 chili increases, there will be ________ of chili cheese fries.

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) A frozen food manufacturer can produce either pizzas or calzones. As the result of an increase in the price of calzones, the firm produces more calzones and fewer pizzas. An economist would explain this by saying

A) the supply of calzones increased and the supply of pizzas decreased.

B) there has been an increase in the quantity supplied of calzones and a decrease in the quantity supplied of pizzas.

C) there has been an increase in the quantity supplied of calzones and a decrease in the supply of pizza.

D) the supply of calzones increased and the quantity supplied of pizza decreased.

 

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

 

 

Figure 3.14

 

5) Refer to Figure 3.14. A decrease 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 B on supply curve S2.

C) supply curve S3.

D) supply curve S1.

6) Refer to Figure 3.14. 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.

 

7) Refer to Figure 3.14. A decrease 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. An increase 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 A to Point B on supply curve S2 would be caused by a(n)

A) increase in the price of pizza.

B) decrease in the demand for pizza.

C) increase in the price of pizza dough.

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 following questions.

 

 

Figure 3.15

 

10) Refer to Figure 3.15. An increase 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.

 

 

 

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