All Flashcards
What is the impact of a tax on the supply of gasoline?
Decreases the supply of gasoline, leading to higher prices and lower quantity.
What is the impact of a subsidy on the supply of renewable energy?
Increases the supply of renewable energy, leading to lower prices and higher quantity.
How does a minimum wage impact the supply of labor?
It does not directly affect the supply of labor, but it can affect the quantity of labor supplied.
How does a carbon tax affect the supply of goods and services with high carbon emissions?
It decreases the supply of goods and services with high carbon emissions.
How does a government regulation requiring safer working conditions affect supply?
It likely decreases supply due to increased production costs.
How does a policy that increases access to education and training affect the future supply of skilled labor?
It increases the future supply of skilled labor.
What is the effect of rent control on the supply of apartments?
Rent control typically decreases the supply of apartments.
How does a tariff on imported steel affect the supply of steel in the domestic market?
It decreases the supply of steel in the domestic market.
How does a policy promoting free trade affect the overall supply of goods and services in a country?
It increases the overall supply of goods and services.
What is the impact of a price ceiling on the supply of a product?
A price ceiling can lead to a decrease in the quantity supplied, as producers may find it unprofitable to sell at the mandated low price.
What is Supply?
The quantity of a good or service producers are willing and able to sell at different prices in a specific time period.
What is the Law of Supply?
As price increases, quantity supplied increases, and vice-versa (positive relationship).
Define 'quantity supplied'.
The amount of a good or service that producers are willing to sell at a specific price.
What is a supply curve?
A graphical representation of the relationship between price and quantity supplied, upward sloping.
What are resource costs?
The expenses incurred by a business when using economic resources to produce goods and/or services.
What are subsidies?
Government financial support to producers, lowering production costs and increasing supply.
Define 'technology' in the context of supply.
Improvements in production methods that allow more output with the same resources, increasing supply.
What are producer expectations?
Beliefs about future prices that influence current supply decisions (e.g., expecting higher prices later may decrease supply now).
What is market equilibrium?
The point where supply and demand intersect, determining market price and quantity.
Define 'change in quantity supplied'.
Movement along the supply curve due to a change in price.
What does an upward-sloping supply curve indicate?
A positive relationship between price and quantity supplied (Law of Supply).
What does a rightward shift of the supply curve indicate?
An increase in supply due to factors other than price (e.g., lower resource costs, subsidies, technological improvement).
What does a leftward shift of the supply curve indicate?
A decrease in supply due to factors other than price (e.g., higher resource costs, taxes).
On a supply curve graph, what is on the x-axis?
Quantity.
On a supply curve graph, what is on the y-axis?
Price.
How does a subsidy affect the supply curve?
It shifts the supply curve to the right.
How does a tax affect the supply curve?
It shifts the supply curve to the left.
What does a movement ALONG the supply curve represent?
A change in quantity supplied due to a change in price.
How does improved technology affect the supply curve?
It shifts the supply curve to the right.
How does an increase in the cost of raw materials affect the supply curve?
It shifts the supply curve to the left.