Which of the following events would shift a supply curve to the left?(1 point)

Question

Responses

Local government increases the taxes that are levied on firms.
Local government increases the taxes that are levied on firms.

The price of the good that the firms produce is expected to fall in the near future.
The price of the good that the firms produce is expected to fall in the near future.

The number of sellers in the market increases.
The number of sellers in the market increases.

The prices of many inputs are dramatically reduced.

Answer 1

The event that would shift a supply curve to the left is:

Local government increases the taxes that are levied on firms.

An increase in taxes on firms raises their costs of production, which typically leads to a decrease in supply, hence shifting the supply curve to the left.

The other options would not result in a leftward shift of the supply curve:

• The expectation of falling prices (second option) would not directly cause a leftward shift; it might lead firms to supply more in the short term in order to sell at higher current prices.
• An increase in the number of sellers (third option) generally shifts the supply curve to the right, as more sellers typically increase the total supply.
• A dramatic reduction in the prices of inputs (fourth option) would also lead to a rightward shift, as lower input costs make production cheaper and encourage firms to produce more.

Answer 2

A business produces apple juice and orange juice. The price of orange juice has increased from $2.00 to $2.50 . This can be modeled by _____.(1 point)
Responses

a shift of the supply curve for apple juice to the right
a shift of the supply curve for apple juice to the right

a downward movement along the supply curve for apple juice
a downward movement along the supply curve for apple juice

a shift of the supply curve for apple juice to the left
a shift of the supply curve for apple juice to the left

an upward movement along the supply curve for apple juice

Answer 3

The correct response to describe the situation is:

a shift of the supply curve for apple juice to the left.

When the price of a substitute good like orange juice increases, producers may allocate more resources to producing that more profitable product, thus decreasing the supply of apple juice. This results in a leftward shift of the supply curve for apple juice.

The other options do not accurately represent what happens in this scenario:

• A downward movement along the supply curve would imply a decrease in quantity supplied at a given price, which is not the case here.
• A rightward shift in the supply curve would suggest an increase in supply, which is also incorrect.
• An upward movement along the supply curve would suggest an increase in price leading to an increase in quantity supplied, not a decrease in supply.

Thus, the leftward shift is the appropriate modeling of the change due to the increased price of orange juice.

Answer 4

The federal government is considering providing a per-student subsidy to private schools in the country. What is the anticipated effect of the subsidy on the supply of private education?(1 point)
Responses

The supply of private education will decrease.
The supply of private education will decrease.

The demand for private education will increase.
The demand for private education will increase.

At any given price, the quantity supplied of private education will decrease.
At any given price, the quantity supplied of private education will decrease.

At any given price, the quantity supplied of private education will increase.
At any given price, the quantity supplied of private education will increase.

Answer 5

The anticipated effect of the subsidy on the supply of private education is:

At any given price, the quantity supplied of private education will increase.

When the federal government provides a per-student subsidy to private schools, it effectively reduces the cost of providing education. This means that, at any given price, schools will have an incentive to supply more education (i.e., they can provide more services because they have additional funds).

The other options do not accurately reflect the expected effect of the subsidy:

• "The supply of private education will decrease" is incorrect because the subsidy incentivizes more supply, not less.
• "The demand for private education will increase" is not the immediate effect being described; while demand could potentially increase as a result of lower effective costs for families, the question specifically pertains to supply.
• "At any given price, the quantity supplied of private education will decrease" is also incorrect for the same reasons as stated above.

Therefore, the most accurate choice is that at any given price, the quantity supplied of private education will increase.

Answer 6

The welding workforce (supply) is expected to grow due to a state program that has increased the access of the vocational education programs necessary to become proficient in the profession. Unfortunately, the price of tools to be a welder have gone up. What impact will this development have on the supply of welders?(1 point)
Responses

The supply of welding will decrease.
The supply of welding will decrease.

The supply of welding will be unaffected.
The supply of welding will be unaffected.

The supply of welding will increase.
The supply of welding will increase.

It is impossible to tell.

Answer 7

In this scenario, the correct response is:

It is impossible to tell.

The increase in access to vocational education programs is expected to grow the supply of welders, as more individuals will be trained and enter the profession. However, the simultaneous increase in the price of tools for welders represents an increase in the cost of entry into the profession.

The net effect on the supply of welders will depend on the relative magnitude of these two opposing factors:

1. The increase in the number of trained welders due to better access to education (which increases supply).
2. The increased costs associated with tools (which could decrease supply, as higher costs may deter some potential welders).

Since we do not have sufficient information about the relative impact of these two factors, we cannot definitively conclude whether the overall supply of welders will increase, decrease, or remain unchanged.