Exam (elaborations)
ECO 202 – Supply: Questions And Correct Answers
- Course
- Institution
ECO 202 – Supply: Questions And Correct Answers
[Show more]
Content preview
ECO 202 – Supply: Questions And Correct AnswersThe price of a good and the quantity supplied are: Right Ans - directly
related (price of a good increases, quantity supplied increases OR price of a
good decreases, quantity supplied decreases)
Firms will be willing and able to produce more output only when prices rise,
because the _______________ cost of production is rising. Right Ans -
opportunity
When analyzing demand and supply curves for an individual good, the vertical
axis measures the: Right Ans - price of the good (and the horizontal
measures quantity)
According to the law of ___________ , producing significantly more of a product
than current levels will come at a higher cost, so the price of the good must
rise for sellers to be willing and able to increase the quantity of the good they
supply to the market. Right Ans - increasing opportunity costs
Market supply is the _____ summation of the quantities supplied by individuals
- firms - states - or even nations at each price over a fixed time period.
Right Ans - horizontal
On the supply side of the market, when the price of a good increases, the
quantity supplied of the good: Right Ans - increases
Companies will be willing and able to produce additional units of a good only
if the: Right Ans - price of the good increases enough to cover the
increasing costs.
How is a supply curve plotted? Right Ans - Quantity supplied is on the
horizontal axis and price of the good is on the vertical axis.
Increasing the quantity of wheat supplied requires that farmers incur
increasing costs for water, fertilizer, and other resources, thus ____________
(increasing/decreasing) the opportunity cost of growing wheat. Right Ans -
increasing
, Market supply is the: Right Ans - sum of individual supply curves added
together.
On the supply side of the market, when the price of a good increases, the
quantity supplied of the good ______________. Right Ans - increases
Firms will be willing and able to produce more output only when prices rise
because the: Right Ans - opportunity cost of production is increasing.
When drawing a supply curve, we always place ____________ on the vertical axis
and _____________ supplied on the horizontal axis. Right Ans - price, quantity
The law of supply tells us that: Right Ans - higher prices of goods result in
higher quantities of goods being supplied.
Market supply is the ___________ summation of the quantities supplied by
individuals, firms, states, or even nations at each price over a fixed time
period. Right Ans - horizontal (or overall)
The supply curve will shift to the right or left when: Right Ans - a non-price
determinant of supply changes.
The law of __________ tells us that higher prices result in higher quantities being
supplied. Right Ans - supply
An increase in the quantity of a good - service - or resource supplied at every
price is: Right Ans - an increase in supply.
Market supply is the ___________ summation of the quantities supplied by
individuals - firms - states - or even nations at each price over a fixed time
period. Right Ans - horizontal
A shift in the supply curve at every price is the result of a change in: Right
Ans - a non-price determinant of supply.
When the supply curve shifts to the left,: Right Ans - -it is called a decrease
in supply.
-lower quantities of a good, service, or resource are produced at all prices.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Zendaya. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
74735 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now