Question : 4.3  How Do Sellers Behave? 1) The quantity supplied of : 1377326

 

4.3  How Do Sellers Behave?

1) The quantity supplied of a good:

A) is inversely related to the price of the good.

B) is determined irrespective of the market price.

C) is always equal to the quantity demanded of the good.

D) is the amount of the good that sellers are ready to supply at a given price.

2) A supply schedule is a table that reports:

A) the expected excess supply in the market at different prices.

B) the profits earned by producers at different levels of production.

C) the different quantities of a good that producers are willing to sell at different income levels.

D) the different quantities of a good that producers are willing to sell at different prices.

3) The ________ plots the relationship between prices and the quantity producers are willing to sell.

A) isoquant

B) supply curve

C) demand curve

D) indifference curve

4) The law of supply states that:

A) supply creates its own demand.

B) the quantity supplied of a good rises when the price rises.

C) at the equilibrium price, there is always some excess supply in the market.

D) the quantity supplied of a good will always equal the quantity of the good demanded.

5) Which of the following examples best describes the law of supply?

A) When the cost of production of cotton fell, the market price of cotton also fell.

B) When the market price of pens increased, sellers started supplying more pens.

C) When the market price of pens increased, sellers started supplying fewer pens.

D) When the cost of production of cotton increased, all suppliers’ willingness to accept decreased.

6) A seller’s willingness to accept is the same as his:

A) total cost of production.

B) fixed cost of production.

C) average cost of production.

D) marginal cost of production.

7) Willingness to accept is:

A) always lower than the marginal cost of production.

B) always higher than the marginal cost of production.

C) the lowest price that a producer is willing to receive to sell an extra unit of a good.

D) the highest price that a producer is willing to receive to sell an extra unit of a good.

8) The market supply is the ________ of the individual supplies of all the potential sellers.

A) sum

B) product

C) square of the sum

D) square root of the sum

 

The following table shows the supply schedule of bread for three sellers in the economy. Assume that these three sellers constitute the entire market.

 

PRICE

($/Loaf)

SELLER 1

Quantity supplied (Loaves)

SELLER 2

Quantity supplied (Loaves)

SELLER 3

Quantity supplied (Loaves)

$4

15

 

40

$3

12

15

 

$2

6

9

24

$1

2

6

11

 

9) Refer to the table above. If at a price of $3/loaf, the market supply of bread is 45 loaves, Seller 3’s supply is:

A) 15 loaves.

B) 18 loaves.

C) 24 loaves.

D) 20 loaves.

10) Refer to the table above. If, at a price of $4/loaf, the market supply of bread is 75 loaves, Seller 2’s supply is:

A) 20 loaves.

B) 30 loaves.

C) 35 loaves.

D) 55 loaves.