Lesson 3.05 Try It 2

Change in Supply

Practice the important concepts from the lesson.

 

1. A change in supply is when suppliers offer different amounts of a product for all at all possible ________.
a. determinants
b. elasticities
c. quantities
d. prices

answer: d. prices

2. All of the following are factors that can cause a change in supply EXCEPT ________.
a. technology
b. the supply schedule
c. taxes
d. government regulations

answer: the supply schedule

3. If the price of an input rises, suppliers will offer ______ of the product.
a. less
b. more
c. the same amount
d. none

answer: less

4. What is a government subsidy?
a. a tax meant intended to slow down demand
b. a government regulation meant to slow down supply
c. a tax intended to slow down supply
d. money given to certain business or industry

answer: money given to certain business or industry

 

5. If automobile suppliers expect a large increase in the price of gas, they are most likely to __________.
a. decrease production of smaller, fuel-efficient cars
b. increase production of smaller, fuel-efficient cars
c. increase the production of larger, less fuel-efficient trucks
d. keep production levels the same

answer: increase production of smaller, fuel-efficient cars

6. When the supply curve shifts to the right, it indicates a(n) ________ .
a. increase in supply
b. decrease in supply
c. increase in demand
d. decrease in demand

answer: increase in supply

7. When the supply curve shifts to the left, it indicates a(n) ________ .
a. decrease in demand
b. increase in demand
c. increase in supply
d. decrease in supply

answer: decrease in supply

8. A new piece of technology is invented that allows for quicker production. What is likely to happen?
a. decrease in demand
b. decrease in supply
c. increase in supply
d. increase in demand

answer: increase in supply

9. The government passes stricter environmental regulations which require a supplier to spend more money. What is likely to happen?
a. decrease in supply
b. increase in supply
c. increase in demand
d. decrease in demand

answer: decrease in supply

10. A change in quantity supplied is the change in the amount offered in response to a change in ________.
a. quantity
b. price
c. demand
d. elasticity

answer: price