Understanding Shifts in Supply
This worksheet explores the factors that cause shifts in the supply curve, differentiating between changes in quantity supplied and changes in supply.
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Understanding Shifts in Supply
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Read each question carefully and answer to the best of your ability. Refer to your knowledge of economics and supply and demand principles.
1. Which of the following would NOT cause a shift in the supply curve for smartphones?
A decrease in the cost of labor for manufacturing smartphones.
An increase in the price of smartphones.
New technology that makes smartphone production more efficient.
A government subsidy for smartphone manufacturers.
2. An increase in the price of resources used to produce a good will cause the supply curve for that good to:
Shift to the right.
Shift to the left.
Remain unchanged.
Move along the curve.
1. A change in the quantity supplied is represented by a shift of the entire supply curve.
True
False
2. Expectations of future prices can influence a producer's current supply decisions.
True
False
1. A shift in the supply curve to the right indicates an in supply.
2. When the government imposes a tax on the production of a good, it typically leads to a in supply.
3. Improved can lead to an increase in supply by making production more efficient.
1. Explain the difference between a 'change in quantity supplied' and a 'change in supply'.
2. List three factors that can cause the supply curve to shift.
Match each scenario with the likely impact on the supply curve.
1. A new, more productive factory is built.
a. Shift supply curve to the left
2. The price of raw materials increases.
b. Shift supply curve to the right
3. The government imposes a new tax on producers.
c. Movement along the supply curve