Refer to the above diagram which shows three supply

59. Refer to the above diagram, which shows three supply curves for corn. Which of the
following would cause the change in the supply of corn illustrated by the shift from S
1
to S
3
?
A) A decrease in the cost of equipment used in corn farming
B) An increase in the price of soybeans
C) A decrease in the price of corn
D) A change in consumer tastes in favor of cornbread
Answer: B
Topic: Supply
Difficulty: 2 Medium

Learning Objective: 03-02
Bloom’s: Level 2 Understand
AACSB: Analytic
Refer To: 03-58
[QUESTION]
60. Which would cause a leftward shift in the supply curve for car washes?
[QUESTION]
61. A fall in the price of milk, used in the production of ice cream, will:
[QUESTION]
62. A movement along a given supply curve for a product is caused by a change in the:
[QUESTION]
63. Which would cause an increase in quantity supplied of product A?

A) An improvement in technology affecting the production of A
B) An increase in the price of product B, an input in the production of A
C) A decrease in the taxes paid by producers of A
D) An increase in the price of A
Answer: D
Topic: Supply
Difficulty: 2 Medium
Learning Objective: 03-02
Bloom’s: Level 1 Remember
AACSB: Analytic
[QUESTION]
64. A plastics manufacturer can make either toys or containers. If the demand for toys increases,
then the:
Reference: 03-65
Use the following to answer questions 65-66:
[QUESTION]