SS141 Macro-Economics Professor Patrick Yanez
Study Questions for Chapter 3 - Set 2
These questions are to facilitate your discussion groups and/or tutoring sessions. Answers are listed at the end of this
file. Since our class time is limited to introducing new topics, we do not have time to review these questions in class;
please use your discussion group and/or tutoring session to review these questions.
Use the following to answer questions 1-2:
Quantit
y
y
x
S
1
S
2
0
Price
1. A decrease in supply is depicted by a:
A) move from point x to point y.
B) shift from S1 to S2.
C) shift from S2 to S1.
D) move from point y to point x.
2. An increase in quantity supplied (as distinct from an increase in supply) is depicted by a:
A) move from point y to point x.
B) shift from S1 to S2.
C) shift from S2 to S1.
D) move from point x to point y.
3. The law of supply indicates that:
A) producers will offer more of a product at high prices than they will at low prices.
B) the product supply curve is downsloping.
C) consumers will purchase less of a good at high prices than they will at low prices.
D) producers will offer more of a product at low prices than they will at high prices.
4. The law of supply:
A) reflects the amounts that producers will want to offer at each price in a series of prices.
B) is reflected in a downsloping supply curve.
C) shows that the relationship between producer revenue and quantity supplied is negative.
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