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 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.
How does increased labor cost affect the supply of cars?
Increased labor costs increase production costs, decreasing the supply of cars (shifts left).
How does a new robot in a factory affect the supply curve?
A new robot (improved technology) increases productivity, increasing supply (shifts right).
How does a tax on cigarettes affect the supply of cigarettes?
A tax increases production costs, decreasing the supply of cigarettes (shifts left).
How does a subsidy to electric car manufacturers affect the supply of electric cars?
A subsidy lowers production costs, increasing the supply of electric cars (shifts right).
If coffee bean farmers expect prices to rise next month, how might this affect the coffee supply today?
Farmers may decrease supply now to sell more at higher prices later (shifts left).
How does an increase in the number of wheat farmers affect the supply of wheat?
More farmers mean more supply, increasing the supply of wheat (shifts right).
A new regulation increases the cost of producing paper. How is the supply of paper affected?
The supply of paper decreases, shifting the supply curve to the left.
A fishing boat is able to catch more fish due to new equipment. How is the supply of fish affected?
The supply of fish increases, shifting the supply curve to the right.
The government imposes a tax on sugar. How does the supply of candy change?
The supply of candy decreases, shifting the supply curve to the left.
The government provides a subsidy to producers of solar panels. How does the supply of solar panels change?
The supply of solar panels increases, shifting the supply curve to the right.