Name: __________________________ Date: _____________

1. Which of the following influences does not shift the supply curve?
A) a decrease in the price firms expect to receive in the future
B) a rise in the wages paid to workers
C) the development of a new production technology
D) people deciding that they want to buy more of the product

2. Consider the supply curve for cotton shirts. An increase in the price of cotton will:
A) increase the quantity supplied of cotton shirts.
B) increase the supply of cotton shirts.
C) decrease the demand for cotton shirts.
D) decrease the supply of cotton shirts.

3. If the price of a commodity increases, you would expect the:

A) quantity supplied to increase.
B) supply curve to shift to the right.
C) supply to increase.
D) quantity supplied to decrease.

4. Which of the following is most likely to shift the supply of milk to the right?
A) an increase in household income and milk is a normal good
B) the bankruptcy of many small dairy farms
C) a tax on each gallon of milk produced
D) a decrease in the price of feed given to dairy cows

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Use the following to answer question 5:

Figure: Supply of Coconuts

5. (Figure: Supply of Coconuts) Look at the figure Supply of Coconuts. If the price of
coconuts decreased, it would be represented in the figure as a movement from:
A) E to B.
B) C to A.
C) A to B.
D) B to A.

6. A shift to the left of a supply curve is caused by:

A) a technological improvement in production.
B) an increase in the number of buyers.
C) an increase in the number of sellers.
D) an increase in the cost of an input.

7. A technological advance in the production of automobiles will:

A) decrease the demand for automobiles.
B) increase the demand for automobiles.
C) decrease the supply of automobiles.
D) increase the supply of automobiles.

8. Which of the following is not a determinant of supply?

A) consumer tastes
B) the cost of production
C) expectations regarding future prices
D) the technology of production

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Use the following to answer question 9:

Figure: The Supply of DVD Rentals

9. (Figure: The Supply of DVD Rentals) Look at the figure The Supply of DVD Rentals. A
decrease in the price of DVD rentals would result in a change illustrated by the move
from:
A) u to v in panel D.
B) s to t in panel C.
C) n to o in panel A.
D) p to q in panel B.

10. An increase in supply is caused by:

A) an increase in the price of the good.
B) a decrease in the price of goods that are used in production.
C) suppliers' expectations of higher prices in the future.
D) an increase in input prices.

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Answer Key

1. D
2. D
3. A
4. D
5. C
6. D
7. D
8. A
9. A
10. B

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