Vocabulary
As price increases, quantity supplied increases (and vice versa)
Law of Supply
Decrease in supply means that the supply curve shifts to the:
Left
A drought occurs in Florida which kills off 10% of the citrus trees. How does this affect the supply curve for oranges?
Supply curve for oranges shifts to the left.
Name the effect(s) that subsidies have on producers.
Acceptable answers: subsidies decrease production costs for producers; producers are able to make more; supply increases; supply curve usually shifts right
If a good is complex and takes a while to produce we would call it?
Inelastic
The quantity of a good or service that producers are willing and able to produce at different prices
Supply
Increase in supply means that the supply curve shifts to the:
Right
A new method of extracting oil is discovered. This new method makes production speed 20% faster. How does this affect the supply curve for oil?
Supply curve for oil shifts to the right.
A decrease in the price of a good or service leads to a(n) ________________ in the quantity supplied.
A decrease in the price of a good or service leads to a(n) decrease in the quantity supplied.
The cost of sugar jumps from $2 a pound to $5 a pound. Sugar is a necessary ingredient to doughnuts. What will happen to the supply of doughnuts?
Supply Decreases= Left
Knowledge, invention, and innovations that can potentially increase resource productivity.
Technology
Name at least 4 factors that shift the supply curve.
Price of resources
Natural events
Technology
Taxes and subsidies
The number of sellers
Seller expectations
The government increases regulations on gas-powered vehicles in an effort to decrease pollution. How does this affect the supply curve for gas-powered vehicles?
Supply curve for gas powered vehicles shifts to the left.
The price of chicken decreases. How does this affect the supply curve for chicken?
Supply curve for chicken is not affected/does not shift. However, there is movement along the curve.
The price of a graphic calculator drops from $75 to $50. What will happen to the supply of graphic calculators?
No Change. Movement along the curve
A table showing quantities supplied at different possible prices.
Supply schedule
The supply curve has a ____________ slope.
The supply curve has a positive slope.
Beef producers expect the price of beef to decrease in 4 months. How does this affect the supply curve for beef?
Supply curve for beef shifts to the right.
A new bowling alley opens up in downtown Hartford City. How does this affect the supply curve for bowling lanes in Hartford City?
Supply curve for bowling lanes shifts to the right.
The federal minimum wage decreases by $1. What, if anything, happens to the supply of hamburgers?
A government payment to a business to encourage or protect a certain economic activity
Subsidy
A graph of a supply curve has __________ ______________ on the x-axis; and _____________ on the y-axis.
A graph of a supply curve has quantity supplied on the x-axis; and price on the y-axis.
The price of chocolate bars decreases. How does this affect the supply curve for chocolate bars?
Supply curve for chocolate bars is not affected/does not shift. However, there is movement along the curve.
Consumer income increases by an average of 10%. How does this affect the supply curve?
This does not affect the supply curve. Consumer income shifts the demand curve.
The US government places an excise tax on all cigarettes produced in the United States. What will happen to the supply of cigarettes?
Decrease= Left