Lesson 12 Flashcards
1
Q
What happens to supply as the number of firms in a market increases?
A
a greater amount of supply
2
Q
Where does the supply curve shift if production cost increases?
A
to the left
3
Q
Where does the supply curve shift if production cost decreases?
A
to the right
4
Q
Higher taxes on firms cause prices to…
A
increase
5
Q
Higher subsidies cause prices to …
A
decrease
6
Q
Draw a diagram to show the effect on quantity supplied if a sales tax is added?
A
Lesson 12 in book
7
Q
Draw a diagram to show the effect on quantity supplied if a subsidy is added?
A
Lesson 12 in book
