Question 1

Lenovo produces laptops and tablets. What would happen to the supply curve for laptops and the supply curve for tablets if the price of laptops falls significantly? Show your answer using two graphs - one for laptops and one for tablets.

Accepted Answer

The answer of Lenovo produces laptops and tablets. What would...

Question 2

(Figure: Market for Tropicana Juices)  Tropicana produces both orange juice and lemonade. What will happen to the supply of Tropicana orange juice when the price of lemonade rises in the market and the price of orange juice stays the same?
​

Accepted Answer

A)  Graph A
B)  Graph B
C)  Graph C
D)  Graph DE) A) and B)
F) A) and C)

Question 3

Which of the following scenarios describes a business that is NOT following the law of supply?

Accepted Answer

A)  The higher the price of custom-made cakes in the market, the more Manfred is willing to bake and sell cakes.
B)  Delilah is less willing to chauffeur people to the airport when the price of airport rides falls.
C)  Automobiles fall in price, and Maria's Autorama Ltd. is now willing to sell more vehicles.
D)  When the price of car detailing rises, Ermo's Auto Garage hires more workers to do car detailing.E) A) and B)
F) B) and C)

Question 4

Which event shifts the supply curve for mint chocolate chip ice cream to the left?

Accepted Answer

A)  an increase in income, if ice cream is a normal good
B)  a decrease in the price of strawberry ice cream, a substitute for mint chocolate chip ice cream
C)  a decrease in the price of ice cream
D)  an increase in the price of cream, an ingredient in ice creamE) B) and C)
F) A) and C)

Question 5

In the market for chimichangas, which factor would NOT shift the supply curve to the right?

Accepted Answer

A)  an increase in the price of beef
B)  an increase in the wages of chimichanga shop workers
C)  fewer chimichanga shops
D)  a decrease in the price of chimichangasE) B) and C)
F) A) and C)

Question 6

Why are economists so particular about the difference between an increase in quantity supplied and an increase in supply? Aren't they the same thing?

Accepted Answer

The answer of Why are economists so particular about the...

Question 7

Assuming that farmers can easily stock beef or pork, if the price of beef decreases, you can expect the:

Accepted Answer

A)  supply of pork to increase.
B)  quantity of pork supplied to increase.
C)  quantity of pork supplied to decrease.
D)  supply curve for pork to shift to the left.E) A) and C)
F) None of the above

Question 8

Consider the supply of chicken patties at a chicken-processing plant. Holding all else constant, for each of the following, identify whether the market would experience a change in quantity supplied or a change in supply, and specify the direction of the change.
(i) Raw chicken can now be acquired at lower prices.
(ii) There is only one producer of chicken patties, but several new producers of chicken patties enter the market.
(iii) The demand for chicken patties increases.

Accepted Answer

The answer of Consider the supply of chicken patties at...

Question 9

An increase in the supply of coffee beans means:

Accepted Answer

A)  a shift to the right of the entire supply curve for coffee beans.
B)  a movement up the supply curve as the price of coffee beans rises.
C)  that fewer coffee beans will be demanded at every price.
D)  that fewer coffee beans will be supplied at every price.E) A) and B)
F) A) and C)

Question 10

Which of the following scenarios depicts a seller who is following the Rational Rule for Sellers?

Accepted Answer

A)  American Airlines determines the marginal cost of an extra passenger to be $75 and sells a discount seat for $250.
B)  Andy's Diner finds that the marginal cost of a fish and chips meal is $7 and lists the item for sale at $6.50.
C)  An auto-rickshaw driver in New Delhi, India, calculates a trip to have a marginal cost of 350 rupees and accepts a ride request for 315 rupees.
D)  Mindy sets up a lemonade stand and calculates the cost of an additional cup of lemonade at 50 cents, and sells it for 25 cents.E) B) and D)
F) None of the above

Question 11

Consider the data in the table. The price of gasoline is $3.99 per gallon at the gas station. If Rexhall Fuel Supplies is a rational seller, how many gallons of gasoline should this seller be willing to sell?

Accepted Answer

A)  14 million gallons per week
B)  30 million gallons per week
C)  20 million gallons per week
D)  42 million gallons per weekE) A) and D)
F) All of the above

Question 12

German firms import machinery from the UK. What will happen to the supply of German goods manufactured using machinery from the UK, if the value of the euro rises against the British pound?

Accepted Answer

A)  The quantity supplied will rise.
B)  The supply curve will shift to the left.
C)  The supply curve will shift to the right.
D)  There will be no effect on the supply.E) B) and C)
F) A) and D)

Question 13

(Figure: Market for New Housing in Dubai)  Which graph shows the effect on the supply curve for new housing in Dubai, if economists predict a decrease in demand for new housing?
​

Accepted Answer

A)  Graph A
B)  Graph B
C)  Graph C
D)  Graph DE) None of the above
F) B) and C)

Question 14

In the local market for coffee, if a newly opened Starbucks competes with two local coffee shops (the Java Joint and Cup O Joe) , the _____ curve shifts to the _____.

Accepted Answer

A)  supply; right
B)  demand; left
C)  supply; left
D)  demand; rightE) B) and C)
F) A) and C)

Question 15

If the price of jet fuel rises, the

Accepted Answer

A)  supply of airline flights increases.
B)  supply of jet fuel decreases.
C)  supply of jet fuel increases.
D)  quantity supplied of jet fuel increases.E) A) and B)
F) B) and C)

Question 16

Butter and ghee (clarified butter) are substitutes in production. What would happen to the supply curve for butter and the supply curve for ghee if the price of butter falls? Show your answer using two graphs - one for butter and the other for ghee.

Accepted Answer

The answer of Butter and ghee (clarified butter) are substitutes...

Question 17

(Figure: Graph)  In the graph, the movement from point E to point F represents

Accepted Answer

A)  a decrease in supply.
B)  a decrease in quantity supplied.
C)  an increase in quantity supplied.
D)  an increase in supply.E) B) and C)
F) C) and D)

Question 18

If expected future profits in an industry rise

Accepted Answer

A)  the number of sellers in the market does not change.
B)  supply will shift right.
C)  supply will shift left.
D)  supply is not affected.E) A) and B)
F) None of the above

Question 19

A beach resort in Bali builds 24 villas with private pools. They also establish two restaurants using state-of-the-art equipment (such as multipurpose ovens, freezers, and food processors) . Meals are prepared using organic, locally sourced vegetables and meat. The hotel also uses water from the town supplier. Based on this scenario, what are the variable costs for the beach resort?

Accepted Answer

A)  Organic vegetables and water.
B)  Multipurpose ovens and freezers.
C)  Food processors.
D)  The construction of the villas.E) A) and B)
F) A) and C)

Question 20

(Figure: Change in Supply)  There are four gas stations in your town. Which graph shows the effect on the local supply curve for gasoline if one of them shuts down?
​

Accepted Answer

A)  Graph A
B)  Graph B
C)  Graph C
D)  Graph DE) None of the above
F) C) and D)

Exam 3: Supply: Thinking Like a Seller

In the local market for coffee, if a newly opened Starbucks competes with two local coffee shops (the Java Joint and Cup O Joe) , the _ curve shifts to the _.

Correct Answer
verified

(Figure: Change in Supply) There are four gas stations in your town. Which graph shows the effect on the local supply curve for gasoline if one of them shuts down?

Correct Answer
verified

(Figure: Market for New Housing in Dubai) Which graph shows the effect on the supply curve for new housing in Dubai, if economists predict a decrease in demand for new housing?

Correct Answer
verified

Which of the following scenarios describes a business that is NOT following the law of supply?

Correct Answer
verified

Which of the following scenarios depicts a seller who is following the Rational Rule for Sellers?

Correct Answer
verified

In the market for chimichangas, which factor would NOT shift the supply curve to the right?

Correct Answer
verified

Assuming that farmers can easily stock beef or pork, if the price of beef decreases, you can expect the:

Correct Answer
verified

Correct Answer
verified

Which event shifts the supply curve for mint chocolate chip ice cream to the left?

Correct Answer
verified

If the price of jet fuel rises, the

Correct Answer
verified

Butter and ghee (clarified butter) are substitutes in production. What would happen to the supply curve for butter and the supply curve for ghee if the price of butter falls? Show your answer using two graphs - one for butter and the other for ghee.

Correct Answer
verified

Correct Answer
verified

An increase in the supply of coffee beans means:

Correct Answer
verified

Consider the data in the table. The price of gasoline is $3.99 per gallon at the gas station. If Rexhall Fuel Supplies is a rational seller, how many gallons of gasoline should this seller be willing to sell?

Correct Answer
verified

If expected future profits in an industry rise

Correct Answer
verified

German firms import machinery from the UK. What will happen to the supply of German goods manufactured using machinery from the UK, if the value of the euro rises against the British pound?

Correct Answer
verified

(Figure: Market for Tropicana Juices) Tropicana produces both orange juice and lemonade. What will happen to the supply of Tropicana orange juice when the price of lemonade rises in the market and the price of orange juice stays the same?

Correct Answer
verified

(Figure: Graph) In the graph, the movement from point E to point F represents

Correct Answer
verified

Lenovo produces laptops and tablets. What would happen to the supply curve for laptops and the supply curve for tablets if the price of laptops falls significantly? Show your answer using two graphs - one for laptops and one for tablets.

Correct Answer
verified

Why are economists so particular about the difference between an increase in quantity supplied and an increase in supply? Aren't they the same thing?

Correct Answer
verified

Exam 3: Supply: Thinking Like a Seller

In the local market for coffee, if a newly opened Starbucks competes with two local coffee shops (the Java Joint and Cup O Joe) , the _____ curve shifts to the _____.

Correct AnswerverifiedShow Answer

(Figure: Change in Supply) There are four gas stations in your town. Which graph shows the effect on the local supply curve for gasoline if one of them shuts down? ​

Correct AnswerverifiedShow Answer

(Figure: Market for New Housing in Dubai) Which graph shows the effect on the supply curve for new housing in Dubai, if economists predict a decrease in demand for new housing? ​

Correct AnswerverifiedShow Answer

Which of the following scenarios describes a business that is NOT following the law of supply?

Correct AnswerverifiedShow Answer

Which of the following scenarios depicts a seller who is following the Rational Rule for Sellers?

Correct AnswerverifiedShow Answer

In the market for chimichangas, which factor would NOT shift the supply curve to the right?

Correct AnswerverifiedShow Answer

Assuming that farmers can easily stock beef or pork, if the price of beef decreases, you can expect the:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which event shifts the supply curve for mint chocolate chip ice cream to the left?

Correct AnswerverifiedShow Answer

If the price of jet fuel rises, the

Correct AnswerverifiedShow Answer

Butter and ghee (clarified butter) are substitutes in production. What would happen to the supply curve for butter and the supply curve for ghee if the price of butter falls? Show your answer using two graphs - one for butter and the other for ghee.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An increase in the supply of coffee beans means:

Correct AnswerverifiedShow Answer

Consider the data in the table. The price of gasoline is $3.99 per gallon at the gas station. If Rexhall Fuel Supplies is a rational seller, how many gallons of gasoline should this seller be willing to sell?

Correct AnswerverifiedShow Answer

If expected future profits in an industry rise

Correct AnswerverifiedShow Answer

German firms import machinery from the UK. What will happen to the supply of German goods manufactured using machinery from the UK, if the value of the euro rises against the British pound?

Correct AnswerverifiedShow Answer

(Figure: Market for Tropicana Juices) Tropicana produces both orange juice and lemonade. What will happen to the supply of Tropicana orange juice when the price of lemonade rises in the market and the price of orange juice stays the same? ​

Correct AnswerverifiedShow Answer

(Figure: Graph) In the graph, the movement from point E to point F represents

Correct AnswerverifiedShow Answer

Lenovo produces laptops and tablets. What would happen to the supply curve for laptops and the supply curve for tablets if the price of laptops falls significantly? Show your answer using two graphs - one for laptops and one for tablets.

Correct AnswerverifiedShow Answer

Why are economists so particular about the difference between an increase in quantity supplied and an increase in supply? Aren't they the same thing?

Correct AnswerverifiedShow Answer

In the local market for coffee, if a newly opened Starbucks competes with two local coffee shops (the Java Joint and Cup O Joe) , the _ curve shifts to the _.

Correct Answer
verified

(Figure: Change in Supply) There are four gas stations in your town. Which graph shows the effect on the local supply curve for gasoline if one of them shuts down?

Correct Answer
verified

(Figure: Market for New Housing in Dubai) Which graph shows the effect on the supply curve for new housing in Dubai, if economists predict a decrease in demand for new housing?

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

(Figure: Market for Tropicana Juices) Tropicana produces both orange juice and lemonade. What will happen to the supply of Tropicana orange juice when the price of lemonade rises in the market and the price of orange juice stays the same?

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified