Question

A government subsidy on ethanol production will shift:

A.) demand to the right

B. Demand to the left

C). Supply to the right

D). supply to the left

An increase in the price of a good causes a:

A). rightward shift in the supply curve

B). movement up the supply curve

C). movement down the supply curve

D). leftward shift in the supply curve

An increase in the technology of producing a good will:

A). shift supply to the left

B). shift supply to the right

C). shift demand to the left

D). shift demand to the right

If new apple picking machines make it cheaper to pick apples, supply will ___ and the supply curve will shift to the ___.

A). decrease; left

B). decrease, right

C). increase; left

D). increase; right

If the price of green tea increases, all else equal:

A). the supply curve of green tea will shift to the right

B). the supply curve of green tea will shift to the left

C). the quantity supplied of green tea will move up the supply curve

D). the quantity supplied of green tea will move down the supply curve

Answer 1

A subsidy to the producer encourages the producer to produce more quantities of ethanol and it increases the supply of ethanol at any price.

C) Supply to the right.

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When there is a change in the price of a good, there is a movement along the supply curve and when there is a change in any other factors (determinants of supply such as subsidy, technology, tax, input price etc), price remaining the same, there is a shift of the supply curve.

B) Movement up the supply curve.

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When there is a change in the price of a good, there is a movement along the supply curve and when there is a change in any other factors (determinants of supply such as subsidy, technology, tax, input price etc), price remaining the same, there is a shift of the supply curve.

B) Shift the supply to the right.

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When there is a change in the price of a good, there is a movement along the supply curve and when there is a change in any other factors (determinants of supply such as subsidy, technology, tax, input price etc), price remaining the same, there is a shift of the supply curve.

D) Increase, right.

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When there is a change in the price of a good, there is a movement along the supply curve and when there is a change in any other factors (determinants of supply such as subsidy, technology, tax, input price etc), price remaining the same, there is a shift of the supply curve.

C). the quantity supplied of green tea will move up the supply curve