43) In the above igure, an increase in cost of the cheese used to produce pizza
A) shifts the supply curve from S to S1.
B) shifts the supply curve from S to S2.
C) results in a movement from point a to point b.
D) results in a movement from point b to point a.
E) has no efect.
Skill: Level 3: Using models
Section: Checkpoint 4.2
Status: Old
AACSB: Analytical thinking
44) In the above igure, an increase in productivity
A) shifts the supply curve from S to S1.
B) shifts the supply curve from S to S2.
C) results in a movement from point a to point b.
D) results in a movement from point b to point a.
E) has no efect.
Skill: Level 3: Using models
Section: Checkpoint 4.2
Status: Old
AACSB: Analytical thinking
51
45) The above igure shows the market for laptops. Which of the following causes a
movement from A to B?
A) a decrease in the number of laptop manufactures and sellers
B) an increase in the productivity of the workers manufacturing laptops
C) an increase in the cost of hard drives
D) an increase in the price of laptops
E) a decrease in the price of laptops
Skill: Level 3: Using models
Section: Checkpoint 4.2
Status: Old
AACSB: Analytical thinking
46) The above igure shows the market for laptops. Which of the following causes a
movement from B to A?
A) an increase in the cost of hard drives
B) an increase in the productivity of the workers manufacturing laptops
C) a decrease in the price of laptops
D) an increase in the price of laptops
E) an increase in the number of laptop manufactures and sellers
Skill: Level 3: Using models
Section: Checkpoint 4.2
Status: Old
AACSB: Analytical thinking
52
47) The above igure shows the market for laptops. Which of the following shifts the supply
curve from S0 to S2?
A) an increase in the cost of hard drives
B) an increase in the productivity of the workers manufacturing laptops
C) a decrease in the price of laptops
D) an increase in the price of laptops
E) a decrease in the number of laptop manufactures and sellers
Skill: Level 3: Using models
Section: Checkpoint 4.2
Status: Old
AACSB: Analytical thinking
48) The above igure shows the market for laptops. Which of the following shifts the supply
curve from S0 to S1?
A) an increase in the cost of hard drives
B) a decrease in the price of laptops
C) an increase in the number of laptop manufactures and sellers
D) an increase in the price of laptops
E) an increase in the productivity of the workers manufacturing laptops
Skill: Level 3: Using models
Section: Checkpoint 4.2
Status: Old
AACSB: Analytical thinking
53
49) The above igure illustrates the market for corn. If point “a” represents the original
equilibrium and point “b” the new equilibrium, which of the following could have caused
the change?
A) an increase in consumers’ preferences for corn
B) an increase in consumers’ income if corn is a normal good
C) an increase in labor costs of producing corn
D) an improvement in the technology of producing corn
E) an increase in consumers’ income if corn is an inferior good
Skill: Level 3: Using models
Section: Checkpoint 4.2
Status: Old
AACSB: Analytical thinking
50) The above igure illustrates the market for corn. If point “a” represents the original
equilibrium and point “b” the new equilibrium, which of the following could have caused
the change?
A) an increase in the number of corn growers
B) an increase the price of wheat, a substitute in production for corn
C) an increase in the cost of the fertilizer used to grow the corn
D) a belief among corn farmers that the price of a bushel of corn will be higher next month
E) an increase in income if corn is a normal good
Skill: Level 3: Using models
Section: Checkpoint 4.2
Status: Old
AACSB: Analytical thinking
54
51) The above igure illustrates the market for corn. If point “a” represents the original
equilibrium and point “b” the new equilibrium, which of the following could have caused
the change?
A) a decrease in the number of corn growers
B) a decrease the price of wheat, a substitute in production for corn
C) an increase in the cost of the seed used to grow the corn
D) a decrease in buyers’ incomes if corn is an inferior good
E) an increased belief among buyers that corn is healthy
Skill: Level 3: Using models
Section: Checkpoint 4.2
Status: Old
AACSB: Analytical thinking
52) In the igure above, if point “a” represents the original equilibrium and point “b” the
new equilibrium, then
A) there has been an increase in supply.
B) there has been an increase in demand.
C) there has been a change in the quantity supplied and no change in supply.
D) Both answers B and C are correct.
E) Both answers A and B are correct.
Skill: Level 3: Using models
Section: Checkpoint 4.2
Status: Old
AACSB: Analytical thinking
53) Autoworkers negotiate a wage increase. How does this change afect the supply curve
of cars?
A) It shifts the supply curve leftward.
B) It shifts the supply curve rightward.
C) It does not shift the supply curve or create a movement along it.
D) The supply curve will shift but there is not enough information to tell if the change shifts
the supply curve rightward, leftward, or not at all.
E) It creates a movement downward along the supply curve.
Skill: Level 3: Using models
Section: Checkpoint 4.2
Status: Old
AACSB: Analytical thinking
55
54) If the supply of iPods increases, then
i. the supply curve for iPods has shifted rightward.
ii. the price of iPods has decreased.
iii. there will be a movement upward along the iPod supply curve.
A) i only
B) i, ii and iii
C) i and ii
D) ii and iii
E) i and iii
Skill: Level 3: Using models
Section: Checkpoint 4.2
Status: Old
AACSB: Analytical thinking
55) Which of the following leads to an increase in the quantity supplied but not an increase
in supply?
A) a decrease in the costs of production
B) an increase in the product’s price
C) an advance in the technology used to produce the good
D) an increase in the price of another product that the suppliers can produce
E) an increase in the number of irms producing the good or service
Skill: Level 2: Using deinitions
Section: Checkpoint 4.2
Status: Old
AACSB: Relective thinking
56) The price of salsa rises. How does the increase in the price of salsa afect the supply of
salsa?
A) The supply of salsa increases.
B) The supply of salsa decreases.
C) There is no change to either the supply of salsa or the quantity of salsa supplied.
D) There is no change to the supply of salsa, but the quantity of salsa supplied increases.
E) There is no change to the supply of salsa, but the quantity of salsa supplied decreases.
Skill: Level 3: Using models
Section: Checkpoint 4.2
Status: Old
AACSB: Relective thinking
56
57) If a higher price for wheat decreases the quantity of corn being produced, which of the
following describes what has occurred?
A) The supply of wheat increased, and the supply of corn decreased.
B) The quantity of wheat supplied increased, and quantity of corn supplied decreased.
C) The supply of wheat increased, and the quantity of corn supplied decreased
D) The quantity of wheat supplied increased, and the supply of corn decreased.
E) The supply of wheat decreased, and the supply of corn decreased.
Skill: Level 4: Applying models
Section: Checkpoint 4.2
Status: Old
AACSB: Relective thinking
58) “Other things remaining the same, if the price of a good rises, the quantity supplied of
that good increases.” This sentence describes a
A) shift of a supply curve.
B) shift of the price curve.
C) movement along a supply curve.
D) movement along the price curve.
E) movement along the quantity curve.
Skill: Level 2: Using deinitions
Section: Checkpoint 4.2
Status: Old
AACSB: Relective thinking
59) The quantity supplied of a good, service, or resource is ________ during a speciied
period and at a speciied price.
A) the amount that people are able to sell
B) the amount that people are willing to sell
C) the amount that people are able and willing to sell
D) the amount that people are willing and able to buy
E) the amount sold
Skill: Level 1: Deinition
Section: Checkpoint 4.2
Status: Old
AACSB: Relective thinking
57
60) The quantity supplied of a good is
A) the same thing as the quantity demanded at each price.
B) the amount that the people are willing and able to sell during a given time period at a
speciied price.
C) equal to the diference between the quantity available and the quantity desired by all
consumers and producers.
D) the amount the irm will sell when it can sell all it wants.
E) always larger than the quantity demanded at each price.
Skill: Level 1: Deinition
Section: Checkpoint 4.2
Status: Old
AACSB: Relective thinking
61) The graph illustrates the supply of sweaters. Which of the following events will increase
the quantity supplied of sweaters?
A) a rise in the price of a sweater
B) a rise in the wage rate paid to the workers who make sweaters
C) a rise in the expected future price of a sweater
D) an increase in the number of sellers of sweaters
E) a decrease in the number of sweater buyers
Skill: Level 2: Using deinitions
Section: Checkpoint 4.2
Status: Old
AACSB: Analytical thinking
58
62) Which of the following indicates that the law of supply applies to makers of soda?
A) An increase in the price of a soda leads to an increase in the demand for soda.
B) An increase in the price of a soda leads to an increase in the supply of soda.
C) An increase in the price of a soda leads to an increase in the quantity of soda supplied.
D) A decrease in the price of a soda leads to an increase in the quantity of soda demanded.
E) A decrease in the price of a soda leads to an increase in the supply of soda.
Skill: Level 3: Using models
Section: Checkpoint 4.2
Status: Old
AACSB: Relective thinking
63) One reason supply curves have an upward slope is because
A) increased supply will require increased technology.
B) people will pay a higher price when less is supplied.
C) a higher price brings a greater proit, so irms want to sell more of that good.
D) to have more of the good supplied requires more irms to open.
E) None of the above answers is correct because supply curves have a downward slope.
Skill: Level 2: Using deinitions
Section: Checkpoint 4.2
Status: Old
AACSB: Relective thinking
64) The market supply curve is the ________ of the ________.
A) horizontal sum; individual supply curves
B) vertical sum; individual supply curves
C) horizontal sum; individual supply curves minus the market demand
D) vertical sum; individual supply curves minus the market demand
E) vertical average; individual supply curves
Skill: Level 2: Using deinitions
Section: Checkpoint 4.2
Status: Old
AACSB: Analytical thinking
59
65) If the costs of producing pizza increase, which will occur?
A) The supply of pizza will decrease.
B) The quantity of pizzas supplied will increase as sellers try to cover their costs.
C) Pizza will cease to be produced and sold.
D) The demand curve for pizza will shift leftward when the price of a pizza increases.
E) The demand curve for pizza will shift rightward when the price of a pizza increases.
Skill: Level 2: Using deinitions
Section: Checkpoint 4.2
Status: Old
AACSB: Relective thinking
66) A rise in the price of a substitute in production for a good leads to
A) an increase in the supply of that good.
B) a decrease in the supply of that good.
C) no change in the supply of that good; instead there is a change in the quantity supplied.
D) a decrease in the quantity of that good supplied.
E) no change in either the supply or the quantity supplied of the good.
Skill: Level 2: Using deinitions
Section: Checkpoint 4.2
Status: Old
AACSB: Relective thinking
67) Suppose the price of leather used to produce shoes increases. The higher price of
leather ________ the supply of shoes, and the supply curve of shoes ________.
A) increases; shifts rightward
B) increases; shifts leftward
C) decreases; shifts rightward
D) decreases; shifts leftward
E) does not change; does not shift
Skill: Level 4: Applying models
Section: Checkpoint 4.2
Status: Old
AACSB: Analytical thinking
60