Question
QUESTIONS 127 - 131
result in a shift of demand. have no effect 011 the quantity supplied. An increase in quantity supplied results in a movement downward and to the left along a fixed supply curve. results in a movement upward and to the right along a fixed supply curve. shifts the supply curve to the left. shifts the supply curve to the right. The law of supply states that, other things equal, when the price of a good falls, the supply of the good rises. rises, the quantity supplied of the good rises. rises, the supply of the good falls. falls, the quantity supplied of the good rises. Refer to Figure 4-10. Which of the following would cause the supply curve to shift from Supply B to Supply A in the market for disposable ballpoint pens? decrease in the price of disposable ballpoint pens an increase in the price of fountain pens an increase in the price of ink an improvement in technology that allows firms to use less labor in the production of disposable ballpoint pens Refer to Figure 4-10. Which of the following would cause the supply curve to shift from Supply A to Supply C in the market for tennis racquets? an increase in the price of tennis balls an expectation by firms that the price of tennis racquets will increase in the very near future a decrease in the price of tennis racquet strings a decrease in the number of firms selling tennis racquets Refer to Figure 4-10. Which of the following would cause the supply curve to shift from Supply A to Supply C in the market for winter coats? an increase in the price of winter coats a decrease in the number of firms selling winter coats a decrease in the price of zippers and snaps a decrease in the price of winter hats and gloves Refer to Figure 4-10. Which of the following would cause the supply curve to shift from Supply B to Supply A in the market for tennis racquets? decrease in the price of tennis balls an expectation by firms that the price of tennis racquets will increase in the very near future a decrease in the price of tennis racquet strings an improvement in technology that allows firms to use less labor in the production of tennis racquets The sum of all the individual supply curves for a product is called total supply. market supply. aggregate supply. total output.
Explanation / Answer
127. c. an increase in the price of ink
128. c. a decrease in the price of tennis racquet strings
129. c. a decrease in the price of zippers and snaps
130. b. an expectation by firms that the price of tennis racquets will increase
131. b. market supply
