Supply Curve Dynamics and Determinants

The video tutorial explains the differences between changes in price and non-price determinants in the context of supply. A change in price results in a movement along the supply curve, while a change in non-price determinants, such as input prices, technology, expectations, and the number of sellers, leads to a shift in the supply curve. An increase in supply shifts the curve to the right, indicating more supply at each price, while a decrease shifts it to the left, indicating less supply. The tutorial also discusses how these shifts can be viewed as horizontal or vertical changes, emphasizing consistency in referring to them as right or left shifts.

What happens to the supply curve when there is a change in price?

• There is a movement along the supply curve.

• The supply curve remains unchanged.

• The supply curve shifts to the right.

• The supply curve shifts to the left.

Which of the following is a nonprice determinant of supply?

• Government regulations

• Input prices

• Consumer preferences

• Advertising

What results from a change in input prices?

• A shift in the supply curve

• A movement along the supply curve

• No change in the supply curve

• A change in consumer demand

How does an increase in supply affect the price required to maintain a certain output?

• It requires a higher price.

• It requires a lower price.

• The price remains the same.

• It depends on consumer demand.

What is the standard way to refer to an increase in supply?

• A shift to the left of the supply curve

• A shift to the right of the supply curve

• A vertical shift of the supply curve

• A horizontal shift of the supply curve

Which factor can lead to a decrease in supply?

• A decrease in the number of sellers

• An increase in consumer demand

• A decrease in input prices

• An increase in technology

What happens to the supply curve when technology improves?

• There is a movement along the supply curve.

• The supply curve shifts to the right.

• The supply curve remains unchanged.

• The supply curve shifts to the left.

How does a decrease in the number of sellers affect the supply curve?

• It has no effect on the supply curve.

• It shifts the supply curve to the right.

• It shifts the supply curve to the left.

• It causes a movement along the supply curve.

What is the effect of a decrease in technology on supply?

• It causes a movement along the supply curve.

• It has no effect on supply.

• It decreases supply.

• It increases supply.

Which of the following is true about a shift to the right of the supply curve?

• It indicates an increase in supply.

• It indicates a decrease in supply.

• It indicates a movement along the supply curve.

• It indicates no change in supply.