Microeconomics Chapter 3 Part 2

The diagram to the right illustrates a supply curve. The development of the supply curve will be studied when you know a little more about costs. For​ now, assume that as price​ increases, revenues​ increase, and, ceteris paribus​, profits rise.​ Therefore, firms will supply a greater quantity.
The supply curve depicts the specific relationship between price and quantity​ supplied, known as the law of supply.
How do economists define the law of​ supply?

At a price of​ $30, there is an excess

The change in the price of a good leads to a change in​ ________, which leads to a​ ________.

An increase in the price of inputs needed to produce a product​ will, ceteris paribus​, result in a

A change in quantity supplied is reflected by a shift of the supply curve.

If the price per pizza is​ $15, there is​ a(n)

If the price per pizza is​ $12, the price will

If this market is unregulated and the price is currently​ $90, you would expect that the price of sunglasses would

A frozen food manufacturer can produce either pizzas or calzones. As the result of an increase in the price of​ calzones, the firm produces more calzones and fewer pizzas.
An economist would explain this by saying

Equilibrium is the condition that exists

This market will be in equilibrium if the price per pizza is

A shift in supply causes the price of a good to fall. The shift must have been an increase in supply

Two normal goods cannot be substitutes for each other

Assume hamburgers are a normal good. An increase in income will cause a movement​ from:

The amount of excess supply is

A shift of the supply curve is caused by a change in a​ good's own price.

Refer to the information provided in the figure at right to answer the question that follows.
A movement from Point A to Point B on supply curve Upper S 2S2 would be caused by​ a(n)

The price of hard drives used in the manufacturing of laptop computers has risen. This will lead to​ ________ laptop computers.

If the current price of a product is below the market equilibrium​ price, there is​ ________ of this product

When quantity demanded exceeds quantity​ supplied, price tends to fall.

Refer to the information provided in the figure at right to answer the question that follows.
A decrease in the price of mushrooms​ (an input for​ gardenburgers) will cause a movement from Point B on supply curve Upper S 2S2 to

Refer to the information provided in the figure at right to answer the question that follows.
An increase in the price of pizza sauce will cause a movement from Point B on supply curve Upper S 2S2 to

If the price of chili​ increases, there will be​ ________ of chili cheese fries.

The supply curve for hula hoops shifts from Upper S 0S0 to Upper S 1S1. This could be caused by

Ceteris paribus​, if the price of Pepsi​ increases, the equilibrium price of​ Coca-Cola will​ ________ and the equilibrium quantity of​ Coca-Cola will​ ________.

Ceteris paribus​, if the cost of producing orange juice​ increases, the equilibrium price of orange juice will​ ________ and the equilibrium quantity of orange juice will​ ________.

A decrease in quantity supplied is represented by a movement from

For a firm that wishes to maximize​ profits, its decision about what quantity of output to supply depends on all of the following except

A decrease in the wage rate of pizza makers will cause a movement from Point B on supply curve Upper S 2S2 to

The market supply of a product is the sum of all the individual quantities of the product supplied at each price.

Quantity supplied is determined by how much producers are willing and able to produce.

At a price of​ $90, there is an excess

If the current price of a product is above the market equilibrium​ price, there is​ ________ of this product.

When quantity supplied exceeds quantity​ demanded, price tends to fall.

An increase in the number of cattle ranchers will cause a movement​ from:

The market for sunglasses is in equilibrium at a price of​ _____ and a quantity of​ _____ sunglasses.

An increase in the wage rate of steel workers will reduce the supply of steel.