Practice Questions
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Which of the following scenarios would most likely cause a rightward shift in the supply curve for smartphones?
When the price of the materials that make phones falls, each factory can make phones for less money. Other options are incorrect because Adding a tax ...
If an increase in the cost of production leads suppliers to offer less at every price level, how will this affect the market equilibrium price and quantity?
When suppliers face higher costs, they produce less. Other options are incorrect because The idea that a higher cost makes the price drop is wrong; Ke...
How would an increase in production costs typically affect the supply curve in a competitive market?
When it costs more to make a product, producers are less willing to sell the same amount. Other options are incorrect because Some think higher costs ...
How does government regulation, such as the imposition of stricter environmental standards, affect the supply curve for manufacturers in a market, and what impact does this have on market equilibrium?
Stricter rules raise the cost of making goods. Other options are incorrect because Some think tighter rules cut costs, but they actually add costs; Re...
In a competitive market, if there is a significant improvement in technology that allows producers to create goods at a lower cost, how is the supply curve affected, and what is the expected impact on consumer prices?
When technology improves, producers can make more goods for less money. Other options are incorrect because Some think lower cost means fewer goods be...
Which of the following factors can cause a shift in the supply curve for a product? Select all that apply.
An increase in production costs makes it more expensive to make goods, so producers supply less, moving the curve inward. Other options are incorrect ...
In what scenario would the supply curve for electric cars shift to the right?
When battery production becomes cheaper, makers can build more cars for the same price. Other options are incorrect because Higher taxes raise the cos...
A local bakery is facing a significant increase in the price of flour due to a recent drought affecting wheat production. As a result, the bakery decides to reduce the quantity of bread it supplies to the market. Which of the following best explains the shift in the supply curve for the bakery's bread?
When flour costs more, the bakery spends more to make bread. Other options are incorrect because Misconception: thinking higher costs push a bakery to...
When the government imposes a tax on a product, this typically causes the supply curve to shift ______ due to increased production costs. Choose the best term to complete the statement.
A tax raises the cost of making the product. Other options are incorrect because Some think a tax makes producers want to sell more, but it actually m...
A new technology has been developed that significantly reduces the production costs of solar panels. How would this event affect the supply curve for solar panels, and why does it belong in that category?
When a new technology cuts the cost of making solar panels, producers can make more panels for the same price. Other options are incorrect because The...
Arrange the following factors that can cause a rightward shift in the supply curve in the correct order: A) Decrease in production costs, B) Introduction of new technology, C) Government subsidies, D) Increase in producer expectations.
New technology first makes factories work faster and cheaper. Other options are incorrect because Starting with lower costs assumes the cost drop happ...
Increase in production costs : Decrease in supply :: Increase in technology : ?
When technology improves, factories can make more with the same inputs. Other options are incorrect because Some think better tech makes production ha...
If the supply curve for electric cars shifts to the right, what is the most likely underlying cause for this change?
When battery makers find cheaper ways to build batteries, the cost to make each car goes down. Other options are incorrect because Higher consumer dem...
Which of the following factors would likely cause a rightward shift in the supply curve for smartphones?
When new tools make phones cheaper to make, factories can produce more at each price. Other options are incorrect because More buyers want phones, but...
Master Shifts in Supply Curve
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