Question 1

Almonds can be used to produce almond beverages or marzipan. What happens if the price of almond beverages increases?

Accepted Answer

A)  The quantity supplied of almond beverages increases, and the supply of marzipan decreases. 
B)  The quantity supplied of almond beverages increases, and the supply of marzipan is unaffected. 
C)  The quantity supplied of almond beverages decreases, and the supply of marzipan decreases. 
D)  The quantity supplied of almond beverages decreases, and the quantity supplied of marzipan increases. 
A)  The quantity supplied of almond beverages increases, and the supply of marzipan decreases. 
B)  The quantity supplied of almond beverages increases, and the supply of marzipan is unaffected. 
C)  The quantity supplied of almond beverages decreases, and the supply of marzipan decreases. 
D)  The quantity supplied of almond beverages decreases, and the quantity supplied of marzipan increases.

Question 2

When sawmills cut logs to produce lumber, they also use the sawdust and scrap wood to produce sheets of particle board. If the price of lumber begins to fall, how would this affect the supply of lumber and particle board?

Accepted Answer

A)  The quantity of lumber supplied decreases, and the particle board supply curve shifts to the right. 
B)  The quantity of lumber supplied increases, and the particle board supply curve shifts to the right. 
C)  The lumber supply curve shifts to the left, and the particle board supply curve shifts to the left. 
D)  The quantity of lumber supplied decreases, and the particle board supply curve shifts to the left. 
A)  The quantity of lumber supplied decreases, and the particle board supply curve shifts to the right. 
B)  The quantity of lumber supplied increases, and the particle board supply curve shifts to the right. 
C)  The lumber supply curve shifts to the left, and the particle board supply curve shifts to the left. 
D)  The quantity of lumber supplied decreases, and the particle board supply curve shifts to the left.

Question 3

The law of supply implies that supply curves are always:

Accepted Answer

A)  downward sloping. 
B)  horizontal. 
C)  vertical. 
D)  upward sloping. 
A)  downward sloping. 
B)  horizontal. 
C)  vertical. 
D)  upward sloping.

Question 4

Use the figure The Supply Curve. What is represented by the movement from point L to point M?
​
Figure: The Supply Curve

Accepted Answer

A)  a decrease in quantity supplied 
B)  an increase in quantity supplied 
C)  an increase in supply 
D)  a decrease in supply 
A)  a decrease in quantity supplied 
B)  an increase in quantity supplied 
C)  an increase in supply 
D)  a decrease in supply

Question 5

Use the table The Supply Schedule for Beaded Necklaces. What is the market supply at a price of $20?
​

Accepted Answer

A)  zero 
B)  two 
C)  three 
D)  six 
A)  zero 
B)  two 
C)  three 
D)  six

Question 6

Use the table The Supply Schedule for Beaded Necklaces. What can be inferred about Abby when the price of necklaces is $20?
​

Accepted Answer

A)  Her opportunity cost of producing a necklace is higher than $20. 
B)  Her total cost of producing a typical necklace when she produced four necklaces is higher than $20. 
C)  She has a net gain of producing necklaces when the price less than $20. 
D)  She values the opportunity cost of her time to produce one necklace at $20. 
A)  Her opportunity cost of producing a necklace is higher than $20. 
B)  Her total cost of producing a typical necklace when she produced four necklaces is higher than $20. 
C)  She has a net gain of producing necklaces when the price less than $20. 
D)  She values the opportunity cost of her time to produce one necklace at $20.

Question 7

. Use the figure Producer Surplus in the Market for Marzipan I. What is producer surplus at a price of $5 per pound?
​
Figure: Producer Surplus in the Market for Marzipan I

Accepted Answer

A)  $4 
B)  $5 
C)  $2 
D)  $6 
A)  $4 
B)  $5 
C)  $2 
D)  $6

Question 8

. Use the figure A Florist's Producer Surplus. How does this producer's surplus change if the price increases from $25 to $45?
​
Figure: A Florist's Producer Surplus

Accepted Answer

It increas

Question 9

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

Accepted Answer

A)  an increase in quantity supplied and a decrease in producer surplus. 
B)  a decrease in quantity supplied and a decrease in producer surplus. 
C)  an increase in quantity supplied and an increase in producer surplus. 
D)  a shift to the right of the supply curve and an increase in producer surplus. 
A)  an increase in quantity supplied and a decrease in producer surplus. 
B)  a decrease in quantity supplied and a decrease in producer surplus. 
C)  an increase in quantity supplied and an increase in producer surplus. 
D)  a shift to the right of the supply curve and an increase in producer surplus.

Question 10

Use the figure The Supply Curve II. What is represented by the change shown in this graph?
​
Figure: The Supply Curve II

Accepted Answer

A)  a decrease in quantity supplied 
B)  an increase in quantity supplied 
C)  an increase in supply 
D)  a decrease in supply 
A)  a decrease in quantity supplied 
B)  an increase in quantity supplied 
C)  an increase in supply 
D)  a decrease in supply

Question 11

. Use the figure Emony's Producer Surplus II. Emony is a florist selling flower arrangements. The current price of a flower arrangement is $80. What is Emony's producer surplus at a price of $80?
​
Figure: Emony's Producer Surplus II

Accepted Answer

A)  $100 
B)  $60 
C)  $80 
D)  $120 
A)  $100 
B)  $60 
C)  $80 
D)  $120

Question 12

Which of the following best describes why suppliers of handmade bead necklaces are willing to supply higher quantities of necklaces only when the price of necklaces increases?

Accepted Answer

A)  Necklace producers must give up increasingly valuable periods of their day to produce them. 
B)  The cost of a typical necklace is always increasing. 
C)  The total cost of production increases as more necklaces are produced. 
D)  There is no scarcity in the resources that are available to suppliers of necklaces. 
A)  Necklace producers must give up increasingly valuable periods of their day to produce them. 
B)  The cost of a typical necklace is always increasing. 
C)  The total cost of production increases as more necklaces are produced. 
D)  There is no scarcity in the resources that are available to suppliers of necklaces.

Question 13

Use the figure The Supply of Candles. Which of the following changes would cause the change in supply shown in this graph?
​
Figure: The Supply of Candles

Accepted Answer

A)  a worker shortage in the candle-making industry 
B)  stricter safety regulation in the candle-making industry 
C)  higher prices for wax, which is used to produce candles 
D)  expectations of a lower price for candles in the future 
A)  a worker shortage in the candle-making industry 
B)  stricter safety regulation in the candle-making industry 
C)  higher prices for wax, which is used to produce candles 
D)  expectations of a lower price for candles in the future

Question 14

. Use the figure Producer Surplus in the Market for Marzipan III. What is producer surplus at a price of $4 per pound?
​
Figure: Producer Surplus in the Market for Marzipan III

Accepted Answer

A)  $4 
B)  $5 
C)  $2 
D)  $6 
A)  $4 
B)  $5 
C)  $2 
D)  $6

Question 15

. Use the figure A Florist's Producer Surplus. What is the minimum price that this seller must get in order to earn at least $75 in producer surplus?
​
Figure: A Florist's Producer Surplus

Accepted Answer

The answer of . Use the figure A Florist's Producer...

Question 16

When the price of a good increases but no other factors change, this is shown on a supply curve as a:

Accepted Answer

A)  shift to the left of the supply curve. 
B)  shift to the right of the supply curve. 
C)  movement to the left along the supply curve. 
D)  movement to the right along the supply curve. 
A)  shift to the left of the supply curve. 
B)  shift to the right of the supply curve. 
C)  movement to the left along the supply curve. 
D)  movement to the right along the supply curve.

Question 17

Ezra produces cotton candy that he sells at carnivals. Recently, a change occurred that makes him willing to sell less candy at each price. What happens to Ezra's supply curve?

Accepted Answer

A)  There is a movement to the right along his supply curve. 
B)  There is a movement to the left along his supply curve. 
C)  There is a shift to the left of his supply curve. 
D)  There is a shift to the right of his supply curve. 
A)  There is a movement to the right along his supply curve. 
B)  There is a movement to the left along his supply curve. 
C)  There is a shift to the left of his supply curve. 
D)  There is a shift to the right of his supply curve.

Question 18

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $3.50, how many mittens will Theo supply, and how much producer surplus will Theo earn?
​

Accepted Answer

A)  three mittens supplied and $0.50 of producer surplus 
B)  three mittens supplied and $4.50 of producer surplus 
C)  four mittens supplied and $0.50 of producer surplus 
D)  four mittens supplied and $10 of producer surplus 
A)  three mittens supplied and $0.50 of producer surplus 
B)  three mittens supplied and $4.50 of producer surplus 
C)  four mittens supplied and $0.50 of producer surplus 
D)  four mittens supplied and $10 of producer surplus

Question 19

Use the figure Emony's Producer Surplus III. Emony is a florist selling flower arrangements. The current price of a flower arrangement is $30. What is Emony's producer surplus at a price of $30?
​
Figure: Emony's Producer Surplus III

Accepted Answer

A)  $10 
B)  $20 
C)  $60 
D)  $50 
A)  $10 
B)  $20 
C)  $60 
D)  $50

Question 20

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

Accepted Answer

A)  an increase in supply 
B)  an increase in quantity supplied 
C)  a decrease in supply 
D)  a decrease in quantity supplied 
A)  an increase in supply 
B)  an increase in quantity supplied 
C)  a decrease in supply 
D)  a decrease in quantity supplied

Almonds can be used to produce almond beverages or marzipan. What happens if the price of almond beverages increases?

When sawmills cut logs to produce lumber, they also use the sawdust and scrap wood to produce sheets of particle board. If the price of lumber begins to fall, how would this affect the supply of lumber and particle board?

The law of supply implies that supply curves are always:

Use the figure The Supply Curve. What is represented by the movement from point L to point M? Figure: The Supply Curve

Use the table The Supply Schedule for Beaded Necklaces. What is the market supply at a price of $20?

Use the table The Supply Schedule for Beaded Necklaces. What can be inferred about Abby when the price of necklaces is $20?

. Use the figure Producer Surplus in the Market for Marzipan I. What is producer surplus at a price of $5 per pound? Figure: Producer Surplus in the Market for Marzipan I

. Use the figure A Florist's Producer Surplus. How does this producer's surplus change if the price increases from $25 to $45? Figure: A Florist's Producer Surplus

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

Use the figure The Supply Curve II. What is represented by the change shown in this graph? Figure: The Supply Curve II

. Use the figure Emony's Producer Surplus II. Emony is a florist selling flower arrangements. The current price of a flower arrangement is $80. What is Emony's producer surplus at a price of $80? Figure: Emony's Producer Surplus II

Which of the following best describes why suppliers of handmade bead necklaces are willing to supply higher quantities of necklaces only when the price of necklaces increases?

Use the figure The Supply of Candles. Which of the following changes would cause the change in supply shown in this graph? Figure: The Supply of Candles

. Use the figure Producer Surplus in the Market for Marzipan III. What is producer surplus at a price of $4 per pound? Figure: Producer Surplus in the Market for Marzipan III

. Use the figure A Florist's Producer Surplus. What is the minimum price that this seller must get in order to earn at least $75 in producer surplus? Figure: A Florist's Producer Surplus

When the price of a good increases but no other factors change, this is shown on a supply curve as a:

Ezra produces cotton candy that he sells at carnivals. Recently, a change occurred that makes him willing to sell less candy at each price. What happens to Ezra's supply curve?

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $3.50, how many mittens will Theo supply, and how much producer surplus will Theo earn?

Use the figure Emony's Producer Surplus III. Emony is a florist selling flower arrangements. The current price of a flower arrangement is $30. What is Emony's producer surplus at a price of $30? Figure: Emony's Producer Surplus III

Use the figure A Change in the Supply Curve II. What change has occurred in this graph? Figure: A Change in the Supply Curve II

Foundations of Economics

Extension: Understanding Graphs

Markets and Economies

Demand

Market Equilibrium

Elasticity

Consumer Behavior

Production Costs

Perfect Competition

Market Power

Factor Markets

Market Failure and Government Failure

Measuring an Economys Performance

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money and Banking

Monetary Policy

Economic Growth and Development

International Trade and Finance

Filters

Exam 4: Supply

Almonds can be used to produce almond beverages or marzipan. What happens if the price of almond beverages increases?

When sawmills cut logs to produce lumber, they also use the sawdust and scrap wood to produce sheets of particle board. If the price of lumber begins to fall, how would this affect the supply of lumber and particle board?

The law of supply implies that supply curves are always:

Use the figure The Supply Curve. What is represented by the movement from point L to point M? ​ Figure: The Supply Curve

Use the table The Supply Schedule for Beaded Necklaces. What is the market supply at a price of $20? ​

Use the table The Supply Schedule for Beaded Necklaces. What can be inferred about Abby when the price of necklaces is $20? ​

. Use the figure Producer Surplus in the Market for Marzipan I. What is producer surplus at a price of $5 per pound? ​ Figure: Producer Surplus in the Market for Marzipan I

. Use the figure A Florist's Producer Surplus. How does this producer's surplus change if the price increases from $25 to $45? ​ Figure: A Florist's Producer Surplus

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

Use the figure The Supply Curve II. What is represented by the change shown in this graph? ​ Figure: The Supply Curve II

. Use the figure Emony's Producer Surplus II. Emony is a florist selling flower arrangements. The current price of a flower arrangement is $80. What is Emony's producer surplus at a price of $80? ​ Figure: Emony's Producer Surplus II

Which of the following best describes why suppliers of handmade bead necklaces are willing to supply higher quantities of necklaces only when the price of necklaces increases?

Use the figure The Supply of Candles. Which of the following changes would cause the change in supply shown in this graph? ​ Figure: The Supply of Candles

. Use the figure Producer Surplus in the Market for Marzipan III. What is producer surplus at a price of $4 per pound? ​ Figure: Producer Surplus in the Market for Marzipan III

. Use the figure A Florist's Producer Surplus. What is the minimum price that this seller must get in order to earn at least $75 in producer surplus? ​ Figure: A Florist's Producer Surplus

When the price of a good increases but no other factors change, this is shown on a supply curve as a:

Ezra produces cotton candy that he sells at carnivals. Recently, a change occurred that makes him willing to sell less candy at each price. What happens to Ezra's supply curve?

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $3.50, how many mittens will Theo supply, and how much producer surplus will Theo earn? ​

Use the figure Emony's Producer Surplus III. Emony is a florist selling flower arrangements. The current price of a flower arrangement is $30. What is Emony's producer surplus at a price of $30? ​ Figure: Emony's Producer Surplus III

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

Foundations of Economics

Extension: Understanding Graphs

Markets and Economies

Demand

Market Equilibrium

Elasticity

Consumer Behavior

Production Costs

Perfect Competition

Market Power

Factor Markets

Market Failure and Government Failure

Measuring an Economys Performance

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money and Banking

Monetary Policy

Economic Growth and Development

International Trade and Finance

Filters

Use the figure The Supply Curve. What is represented by the movement from point L to point M? Figure: The Supply Curve

Use the table The Supply Schedule for Beaded Necklaces. What is the market supply at a price of $20?

Use the table The Supply Schedule for Beaded Necklaces. What can be inferred about Abby when the price of necklaces is $20?

. Use the figure Producer Surplus in the Market for Marzipan I. What is producer surplus at a price of $5 per pound? Figure: Producer Surplus in the Market for Marzipan I

. Use the figure A Florist's Producer Surplus. How does this producer's surplus change if the price increases from $25 to $45? Figure: A Florist's Producer Surplus

Use the figure The Supply Curve II. What is represented by the change shown in this graph? Figure: The Supply Curve II

. Use the figure Emony's Producer Surplus II. Emony is a florist selling flower arrangements. The current price of a flower arrangement is $80. What is Emony's producer surplus at a price of $80? Figure: Emony's Producer Surplus II

Use the figure The Supply of Candles. Which of the following changes would cause the change in supply shown in this graph? Figure: The Supply of Candles

. Use the figure Producer Surplus in the Market for Marzipan III. What is producer surplus at a price of $4 per pound? Figure: Producer Surplus in the Market for Marzipan III

. Use the figure A Florist's Producer Surplus. What is the minimum price that this seller must get in order to earn at least $75 in producer surplus? Figure: A Florist's Producer Surplus

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $3.50, how many mittens will Theo supply, and how much producer surplus will Theo earn?

Use the figure Emony's Producer Surplus III. Emony is a florist selling flower arrangements. The current price of a flower arrangement is $30. What is Emony's producer surplus at a price of $30? Figure: Emony's Producer Surplus III

Use the figure A Change in the Supply Curve II. What change has occurred in this graph? Figure: A Change in the Supply Curve II