Which of the following best describes the law of supply? An increase or decrease
ID: 1220057 • Letter: W
Question
Which of the following best describes the law of supply?
An increase or decrease in the price of a good will increase or decrease the amount producers are willing and able to produce and sell.
An increase or decrease in the price of a good will decrease or increase in the amount producers are willing and able to produce and sell.
An increase or decrease in the amount producers are willing to produce and sell will increase and decrease the price of the good.
An increase or decrease in the amount producers are willing to produce and sell will decrease or increase the price of the good.
An increase or decrease in the quantity demanded by consumers will increase or decrease the amount producers are willing to produce and sell.
Which statement is correct?
A tax on cigarettes will shift the supply curve out and to the right.
A tax on cigarettes will shift the demand curve out and to the right.
A tax on cigarettes will shift the supply curve in and to the left.
A tax on cigarettes will shift the demand curve out and to the left.
A tax on cigarettes will shift the demand and supply curves in and to the left.
Which of the following best describes the law of supply?
An increase or decrease in the price of a good will increase or decrease the amount producers are willing and able to produce and sell.
An increase or decrease in the price of a good will decrease or increase in the amount producers are willing and able to produce and sell.
An increase or decrease in the amount producers are willing to produce and sell will increase and decrease the price of the good.
An increase or decrease in the amount producers are willing to produce and sell will decrease or increase the price of the good.
An increase or decrease in the quantity demanded by consumers will increase or decrease the amount producers are willing to produce and sell.
Which of the following will shift the supply of apples out and to the right?
An improvement in the technology used to produce apples.
A rise in the price of a substitute good like bananas.
A rise in the price of inputs used to produce apples.
A fall in the price of a substitute good like bananas.
A rise in the wages of apple pickers.
The impact of an improvement in technology is that it:
Increases supply as it reduces the cost of production by allowing producers to save on the use of inputs.
Increases demand as it increases the cost of production by expanding the number of choices consumers have.
Increases supply as it raises the cost of production and the profit of the seller.
Increases demand by changing consumer tastes.
Increases supply as it increases the expected future price of the product.
If stock investors anticipate the price of Apple's stock to rise they will:
Sell the stock today because they believe it will be selling at a higher price in the future.
Sell the stock today because they believe it will eventually fall in price after it rises.
Reduce their sales of the stock today because they believe the price will fall in the future.
Reduce their current and future sales of the stock because they believe the price will rise.
Reduce their current sales of the stock but increase their future sales of the stock once the price rises.
A decrease in the number of corn farmers will:
Decrease the supply of corn, shifting the supply curve in and to the left.
Decrease the supply of corn, shifting the supply curve out and to the right.
Increase the supply of corn, shifting the supply curve in and to the left.
Increase the supply of corn, shifting the supply curve out and to the right.
E Increase the demand for corn, shifting the demand curve out and to the right.
An increase or decrease in the price of a good will increase or decrease the amount producers are willing and able to produce and sell.
An increase or decrease in the price of a good will decrease or increase in the amount producers are willing and able to produce and sell.
An increase or decrease in the amount producers are willing to produce and sell will increase and decrease the price of the good.
An increase or decrease in the amount producers are willing to produce and sell will decrease or increase the price of the good.
An increase or decrease in the quantity demanded by consumers will increase or decrease the amount producers are willing to produce and sell.
Explanation / Answer
1 .Option (A) - The law of supply is a fundamental principle of economic theory which states that, all else remains constant, an increase in price results in an increase in quantity supplied and vice versa.
2 .Option(c) - After imposition of the tax, the supply curves shift up and to the left.
3. Option (A) - The law of supply is a fundamental principle of economic theory which states that, all else remains constant, an increase in price results in an increase in quantity supplied and vice versa.
4. Option (D) - The supply curve for apples will shift to the right if fruit growers see the price of
One kind of fruit (substitute) fall, they will switch production to another fruit (apples).
5. Option (A) - Technological change may involve a change in the output, raw materials, management techniques but in all cases it would affect the relationship between labor, capital and other factors of production. Technological improvement may reduce the cost of production by allowing producers to save on the use of inputs.
6. Option(E) - If investors anticipate the price of a stock to rise then they will Reduce their current sales of the stock but, increase their future sales of the stock once the price rises.
7. Option(A)- As we see more and more firms enter the market, more and more of the good in question gets produced. So an increase in the number of firms gives us an increase in supply,
while a decrease in the number of firms gives us a decrease in supply as a result supply curve to the left.
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