CLEP Microeconomics chapter practice4 questions

07 Supply

These questions come directly from the chapter practice in the book. Choose the best answer, check your reasoning, and use the explanation to correct any gap.

Question 1

Question 1 of 4

A rise in the market price of strawberries causes growers to offer more strawberries for sale. On a graph, this is

A change in the good's own price produces movement along supply. The curve itself shifts only when a production condition changes.
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D. an upward movement along supply

A change in the good's own price produces movement along supply. The curve itself shifts only when a production condition changes.

Question 2

Question 2 of 4

The price of fertilizer used in corn production rises. What happens to the supply of corn?

Fertilizer is an input. Its higher price raises the marginal cost of producing corn, reducing supply at every corn price.
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B. It shifts left because marginal cost rises.

Fertilizer is an input. Its higher price raises the marginal cost of producing corn, reducing supply at every corn price.

Question 3

Question 3 of 4

Several new food trucks enter a city market. At every possible meal price, market quantity supplied will

Market supply adds the quantities of all sellers. Entry increases that horizontal sum at each price.
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A. increase

Market supply adds the quantities of all sellers. Entry increases that horizontal sum at each price.

Question 4

Question 4 of 4

A new oven allows a bakery to produce each quantity with less labor and energy. The bakery's supply curve will

The technology reduces cost at each output level, so the bakery is willing to supply more at every price.
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E. shift right because production cost falls

The technology reduces cost at each output level, so the bakery is willing to supply more at every price.

Quiz complete