Period:______Name:___________________________

Supply Problems

Part 1: Multiple Choice

1. The supply curve is upward sloping due to:
A. When price falls, quantity demanded rises
B. The law of diminishing marginal utility
C. The prot motive of rms
D. When price falls, quantity supplied rises

2. If producers raise the price of the product they are selling, what happens to the supply curve?
A. Movement: increase in P, increase in Qs
B. Movement: decrease in P, decrease in Qs
C. Shift: right (increase in S)
D. Shift: left (decrease in S)

3. If it becomes more expensive to produce a product (cost of inputs rise), what happens to the
supply curve?
A. Movement: increase in P, increase in Qs
B. Movement: decrease in P, decrease in Qs
C. Shift: right (increase in S)
D. Shift: left (decrease in S)

4. Which could cause a decrease (shift left) in the supply of tennis balls?
E. A decrease in the cost of producing tennis balls
F. An improvement in the technology for making tennis balls
G. A decrease in the level of government subsidy for tennis balls
H. A change in the price of tennis balls

5. The United Nations helps rice farmers in Senegal learn how to irrigate their land in new ways.
How does this affect the supply curve for Senegalese rice?
A. Movement: increase in P, increase in Qs
B. Movement: decrease in P, decrease in Qs
C. Shift: right (increase in S)
D. Shift: left (decrease in S)

6. Which of the following factors is least likely to affect the supply of Apple computers?
A. The price of microchips decreases
B. The US government allows computer companies to outsource their labor
C. There is a snow storm in California, where Apple computers are made
D. Apple company upgrades equipment in its computer manufacturing warehouses






Part 2: Answer the following questions about the Tangerine industry in Jeju, South Korea. Graphs
should represent Price and Quantity for Tangerines. Label an S1 and S2 curve, if necessary.
For each question, write the cause of the change.


1. Jeju Farmers are introduced to a new type of fertilizer that
also helps keep insects away from their crops. Draw a supply
graph that represents this situation.

Cause of the change:





2. Farmers think the tangerines look nicer than usual, so they
raise the price of tangerines slightly. Draw a supply graph that
represents this situation.

Cause of the change:





3. Fewer typhoons this year resulted in less damage to the
tangerine crop. Draw a supply graph that represents this
situation.

Cause of the change:





4. The government decides to place a higher property tax on
farmland to raise money for local schools. Draw a supply
graph that represents this situation.

Cause of the change: