If ethanol production is expected to increase the price of corn, U.S. farmers will likely A) shift the supply of corn to the left. B) shift the supply of corn to the right. C) reduce the production of corn by sliding down the corn supply curve, all else equal. D) increase the production of corn […]
Date: September 9th, 2020
What is the total market supply, Qs, for luxury sports cars in the United States if the only three suppliers inverse supply functions are P = -10 + 5Qs1, P = 20 + 5Qs2, P = 5Qs3? A) P = 10 + 21Qs B) Qs = -2 +P/15 C) Qs = 6 + P/15 D) […]
Date: September 9th, 2020
Suppose society wants to increase the number of teachers in society but doesn’t want to pay teachers any more in salary and benefits. This could only occur by A) making it more expensive to become a teacher, perhaps by raising college tuition rates. B) making it less expensive to become a teacher, perhaps by offering […]
Date: September 9th, 2020
If two firms produce the same product but have different supply curves, A) this would indicate that some other variable differs across the two firms. B) this would indicate that all variables are the same across the two firms. C) this would indicate that one or both of the firm’s managers are misinformed. D) this […]
Date: September 9th, 2020
The inverse supply curve of coffee beans equals P = -5 – 2rain + Qs, where rain equals the number of inches of rain per year. How much does quantity supplied change when rain increases from 30 inches to 40 inches per year? A) Qs decreases by 40. B) Qs increases by 40. C) Qs […]
Date: September 9th, 2020
The supply curve is influenced by A) the income of consumers. B) the number of customers in the market. C) the prices of the inputs required to produce the product. D) the expectations of future profit. ANSWER C
Date: September 9th, 2020
Technological innovation in the production of computers has led to A) a decrease in the quantity demanded for computers. B) a rightward shift of the supply curve for computers. C) a decrease in the quantity supplied of computers. D) None of the above. ANSWER B
Date: September 9th, 2020
The Law of Supply ensures that supply curves slope upward. Indicate whether the statement is true or false ANSWER False. There is no “Law of Supply” that requires the market supply curve to have a particular slope.
Date: September 9th, 2020
The price of crude oil increased to $100 per barrel in early 2008. What would we expect to see happen to the supply of gasoline, which is produced using crude oil? A) The supply of gasoline will increase. B) The supply of gasoline will decrease. C) The supply of gasoline will stay the same because […]
Date: September 9th, 2020
Horizontally summing different supply curves assumes A) that individual firms cannot influence the good’s price. B) that all firms operate in collusion. C) that only firms who volunteer are included in the summation. D) all firms produce the same amount of output. ANSWER A
Date: September 9th, 2020
