Quiz 6

Question 1

Due to technological change if the product becomes cheaper to produce the suppliers will be willing to offer __________ for sale at a given market price.

Answer 1

More

Question 2

True or False? If physicians’ wages were to rise, this increase in labor cost would result in suppliers’ decreased willingness to offer as much for sale at the original price.

Answer 2

True

Question 3

True or False? Because physicians can use radiology for diagnosis and treatment, an increase in price for radiology services will cause the quantity supplied of physician services to decrease at every market price, thus shifting the supply curve to the left.

Answer 3

True

Question 4

As more firms enter the market, the aggregate supply of the product will be _________ at every price, thus causing supply to shift to the right.

Answer 4

Greater

Question 5

A backward-bending supply of labor refers to a situation where, after a certain level, higher wages lead to a(n) __________ in the supply of labor.

Answer 5

decrease