If something happens to alter the quantity supplied at any given price, then |
the supply curve shifts |
When quantity supplied decreases at every possible price, we know that the supply curve has |
shifted to the left |
When quantity supplied increases at every possible price, we know that the supply curve has |
Shifted to the left |
An increase in supply is represented by |
a rightward shift of the supply curve |
A decrease in supply is represented by |
a leftward shift of the supply curve |
An increase in quantity supplied |
results in a movement upward and to the right along a fixed supply curve |
A decrease in quantity supplied |
results in a movement downward and to the left along a fixed supply curve |
A leftward shift of supply curve is called |
decrease in supply |
A rightward shift of supply curve is called |
increase in supply |
A movement upward and to the right along a supply curve is called |
an increase in quantity supplied |
A movement downward and to the left along a supply curve is called |
decrease in quantity supplied |
A decrease in the price of a good will |
decrease in quantity supplied |
An increase in the price of a good will |
increase in quantity supplied |
When the price of a good or service changes |
there is a movement along a given supply curve |
A movement along the supply curve might be caused by a change in |
the price of the good or service that is being supplied |
Holding the nonprice determinants of supply constant, a change in price would |
result in a movement along a stable supply curve |
An increase in the price of a good would |
give producers an incentive to produce more |
An increase in the price of oranges would lead to |
a movement up and to the right along the supply curve for oranges |
The supply for cookbooks shifts |
When a determinant of the supply of cookbooks other than the price of cookbooks changes |
Lead is important in the production of crystal. If the price of lead decreases, then we would expect the supply of |
Crystal to increase |
Suppose you make jewelry. If the price of god falls, then we would expect you to |
Be willing and able to produce more jewelry than before at each possible price |
Supposed there is an increase in the price of steel. We would expect the supply curve for steel beams |
shift leftward |
Wheat is the main input in the production of flour. If the price of wheat decreases, then we would expect the |
supply of flour to increase |
An increase in the price of rubber coincides with an advance in the technology of tire production. As a result of these two events, |
The shift is ambiguous |
A technological advance will shift the |
supply curve to the right |
An advance in production technology will |
decrease a firm’s costs and increase its supply |
If car manufacturers begin utilizing new labor-saving technology on their assembly lines, we would NOT expect |
Individual car manufacturers to move up and to the right along their individual supply curves |
Today, producers changed their expectations about the future. This change |
can affect today’s supply |
If suppliers expect the price of their product to fall in the future, then they will |
increase supply now |
What will happen in the rice market now if sellers expect higher rice prices in the near future? |
The supply of rice will decrease |
Today’s supply curve for gasoline could shift in response to |
A change in the expected future price of gasoline |
A dress manufacturer recently has come to expect higher prices for dresses in the near future. We would expect |
the dress manufacturer to supply fewer dresses now than it was supplying previously |
Recent forest fires are expected to cause the price of lumber to rise in the next 6 months. As a result, we can expect the supply of lumber to |
Fall now |
What is a determinant of the market supply curve but NOT a determinant of an individual seller’s supply? |
Number of sellers |
If the number of sellers in a market increases, then the |
supply in that market will increase |
A decrease in the number of sellers in the market causes |
the supply curve to shift to the left |
Supply Review
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