One Would Speak of a Change in the Quantity of a Good

question 19

Multiple Choice

One would speak of a change in the quantity of a good supplied, rather than a change in supply, if

• A)supplier expectations about future prices change.
• B)the price of the good changes.
• C)the cost of producing the good changes.
• D)prices of substitutes in production change.

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Definitions:

Price Effect

The change in the quantity demanded of a good or service caused by a change in its price.

Deadweight Loss

The loss of economic efficiency that occurs when the equitable market outcome is not achieved, often due to taxes, subsidies, or artificially imposed prices like price ceilings or floors.

Perfect Competition

A market structure characterized by a large number of small firms, a homogeneous product, free entry and exit, and perfect information that leads to firms being price takers.

Short-Run Supply Curve

A graphical representation showing the quantity of goods a firm is willing and able to supply at different prices in a given short-term period, holding some factors constant.