MODULE 6: Supply and Demand: Supply

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Tackle the Test: Multiple-Choice Questions

Question

Which of the following will decrease the supply of rice?
A.
There is a technological advance that affects the production of all goods.
B.
The price of rice falls.
C.
The price of corn (which consumers regard as a substitute for rice) decreases.
D.
The wages of workers producing rice increase.
E.
The demand for rice decreases.
Which of the following will decrease the supply of rice?
Question

An increase in the demand for steak, which increases the price of steak, will lead to an increase in which of the following?
A.
the supply of steak
B.
the supply of hamburger (a substitute in production)
C.
the supply of chicken (a substitute in consumption)
D.
the supply of leather (a complement in production)
E.
the demand for leather
An increase in the demand for steak, which increases the price of steak, will lead to an increase in which of the following?
Question

A technological advance in textbook production will lead to which of the following?
A.
a decrease in textbook supply
B.
an increase in textbook demand
C.
an increase in textbook supply
D.
a movement along the supply curve for textbooks
E.
an increase in textbook prices
A technological advance in textbook production will lead to which of the following?
Question

Expectations among hiking boot makers that boot prices will rise significantly in the future will lead to which of the following now?
A.
an increase in boot supply
B.
no change in boot supply
C.
a decrease in boot supply
D.
a movement to the left along the boot supply curve
E.
a movement to the right along the boot supply curve
Expectations among hiking boot makers that boot prices will rise significantly in the future will lead to which of the following now?
Question

Starch from the stalks of potato plants is used to make packing peanuts, a complement in production. A decrease in potato demand that lowers potato prices will cause which of the following in the packing-peanut market?
A.
an increase in supply and no change in demand
B.
an increase in supply and a decrease in demand
C.
a decrease in both demand and supply
D.
a decrease in supply and no change in demand
E.
a decrease in supply and an increase in demand
Starch from the stalks of potato plants is used to make packing peanuts, a complement in production. A decrease in potato demand that lowers potato prices will cause which of the following in the packin