Question

Suppose you are a producer of friendship bracelets. How would the following events affect your/the market's willingness and ability supply friendships bracelets? Match the event on the left to the proper determinant on the right.

1. The price of friendship bracelets decreases.

2. The school requires you to put a warning label on each bracelet. (may lose blood circulation)

3. The cost of labor to produce bracelets decreases.

4. Many more students decide to sell friendship bracelets.

5. You improve the education of your workers and they make more bracelets in the same time as before.

a. This is a change in costs due to government intervention.
b. This is a change in cost of inputs.
c. This does not affect supply.
d. This is a change in the number of suppliers.
e. This is a change in the quality of inputs.



Now, using the information from the previous question, how will those same changes affect the overall supply of friendship bracelets?

6. You improve the education of your workers and they make more bracelets in the same time as before

7. The price of friendship bracelets decreases.

8. The cost of labor to produce bracelets decreases.

9. The school requires you to put a warning label on each bracelet. (may lose blood circulation)

10. Many more students decide to sell friendship bracelets.

a. no change in supply
b. increase supply
c. decrease supply

1. c
2. e
3. b
4. d
5. a
6. b
7. b
8. c
9. a
10. b

I don't know if these are right or wrong. Could you please help me out

Answer 1

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