Exam 4: Supply

The supply of cheese sticks is upward sloping. If the price of cheese sticks decreases, all else equal, we would see:

Use the figure Emony's Producer Surplus IV. How does Emony's producer surplus change if the price increases from $20 to $45? ​ Figure: Emony's Producer Surplus IV

Use the figure A Change in the Supply Curve II. What caused the change shown in this graph? ​ Figure: A Change in the Supply Curve II

Explain why producer surplus is not the same as profit.

When considering price expectations, why does it matter if an item is perishable or not?

Forest fires in the Pacific Northwest of the United States have destroyed thousands of fir trees that are used in making lumber. What change can be expected in the supply of lumber in that region of the country?

Which of the following would cause an increase in the supply of hot-air balloon rides?

Good X and good Y are substitutes in production. If the price of good X increases, then the _____ of good X increases, and the _____ of good Y decreases.

Use the table Marginal Cost of Producing Candles. What is the change in producer surplus earned if the price falls from $1.75 to $1.50? ​

A firm that expects lower prices in the future will keep:

Use the figure A Change in the Supply Curve. What caused the change shown in this graph? ​ Figure: A Change in the Supply Curve

Which of the following would cause a decrease in the supply of rides from ride sharing services?

A drought in California, a region known for its almond trees, would have which of the following effects on the supply of almond beverages?

A table that indicates the quantity of a good or service that would be supplied in a given period at various prices is called a:

Use the table The Supply Schedule for Beaded Necklaces. What is the lowest price that would create a market supply of six necklaces? ​

Indicate the change that occurs for book sellers if each of the following happens: A. Textbook sellers get a $10 subsidy per book. B. The cost of paper increases. C. The price of textbooks increases. D. The price of dystopian novels increases.

Rodney sells gluten-free cupcakes at the Farmer's Market. His marginal cost for making another cupcake is $1, and he can sell his cupcakes for $3. Rodney's producer surplus from each sold cupcake is equal to:

Use the figure A Change in the Supply Curve. What could have caused the change shown here? ​ Figure: A Change in the Supply Curve

Which of the following does NOT cause the supply curve to increase?

When the number of firms in an industry increases, what change will occur?