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production costs or technology, that changes how much producers offer at every possible price."},{"text":"change in quantity supplied","correct":false,"explanation":"A change in quantity supplied is caused by the good's own price and produces movement along the curve. The correct term is determinant of supply, which shifts supply."},{"text":"determinant of demand","correct":false,"explanation":"A determinant of demand changes consumers' willingness or ability to buy. A determinant of supply instead changes producers' quantity supplied without changing the good's own price."},{"text":"market equilibrium price","correct":false,"explanation":"The market equilibrium price is where quantity demanded equals quantity supplied. The correct term is determinant of supply, a non-price factor affecting producers' supply decisions."}]},{"id":"168b0e2f-c63a-4835-8ff5-a3d4e3404480","cardType":"cloze","points":null,"front":"A change in a condition of supply shifts the [ ].","back":"A change in a condition of supply shifts the whole supply curve.","mcqOptions":[{"text":"whole supply curve","correct":true,"explanation":"A condition of supply affects the quantity producers offer at every price, so the whole supply curve shifts rather than one point changing."},{"text":"single point on the curve","correct":false,"explanation":"A single point changes when the good's own price causes movement along supply. A condition of supply instead shifts the whole supply curve."},{"text":"whole demand curve","correct":false,"explanation":"Confusing supply conditions with demand conditions leads to the wrong curve. A change in a condition of supply shifts the whole supply curve."},{"text":"market equilibrium point","correct":false,"explanation":"Equilibrium may subsequently change, but that is not what shifts directly. A changed supply condition first shifts the whole supply curve."}]},{"id":"b4c062a6-12ec-40bb-8689-95504bf3f1c3","cardType":"basic","points":1,"front":"What diagram change results when a determinant of supply changes?","back":"A shift of the supply curve.","mcqOptions":[{"text":"A shift of the supply curve.","correct":true,"explanation":"A determinant changes quantity supplied at every possible price, so the entire supply curve shifts either left or right."},{"text":"A movement along the supply curve.","correct":false,"explanation":"Movement along supply occurs only when the good's own price changes. A supply determinant changes the quantities offered at all prices, causing a shift of the supply curve."},{"text":"A shift of the demand curve.","correct":false,"explanation":"This confuses conditions affecting producers with those affecting consumers. A determinant of supply changes producers' behaviour and therefore causes a shift of the supply curve."},{"text":"A movement along the demand curve.","correct":false,"explanation":"Movement along demand follows a change in the good's own price, not a supply condition. A determinant of supply causes a shift of the supply curve."}]},{"id":"b7c8ff5b-8d1a-42ac-8965-e405408ca3ea","cardType":"basic","points":1,"front":"What diagram change results when the good's own price changes?","back":"A movement along the supply curve.","mcqOptions":[{"text":"A movement along the supply curve.","correct":true,"explanation":"The supply curve already shows how quantity supplied varies with the good's own price, so a price change selects a different point on that curve."},{"text":"A shift of the supply curve.","correct":false,"explanation":"A supply shift requires a non-price determinant such as costs or technology. A change in the good's own price instead causes movement along the supply curve."},{"text":"A movement along the demand curve.","correct":false,"explanation":"Although the price change can also cause movement along demand, the question concerns producers. Their response is a movement along the supply curve."},{"text":"A shift of the demand curve.","correct":false,"explanation":"The good's own price does not shift demand or supply because price is already represented on both curves. For supply, it causes movement along the supply curve."}]},{"id":"16cdc6c4-e613-4a9d-be60-7df91b7902dd","cardType":"cloze","points":null,"front":"Lower unit costs shift the supply curve to the [ ].","back":"Lower unit costs shift the supply curve to the right.","mcqOptions":[{"text":"right","correct":true,"explanation":"Lower unit costs make production more profitable at each price, encouraging firms to offer a greater quantity and shifting the supply curve to the right."},{"text":"left","correct":false,"explanation":"A leftward shift represents reduced supply and would follow higher, not lower, unit costs. Lower costs increase profitability and shift supply to the right."},{"text":"origin","correct":false,"explanation":"Supply curves do not shift towards the origin in response to lower costs. Lower costs increase quantity supplied at each price, producing a rightward shift."},{"text":"price axis","correct":false,"explanation":"Moving towards the price axis would indicate smaller quantities supplied, reversing the effect of lower costs. Lower costs raise supply and shift the curve to the right."}]},{"id":"7770d6c7-c86a-4d18-adf7-68dca74b086d","cardType":"cloze","points":null,"front":"Higher unit costs shift the supply curve to the [ ].","back":"Higher unit costs shift the supply curve to the left.","mcqOptions":[{"text":"left","correct":true,"explanation":"Higher unit costs reduce profitability at each possible selling price, so firms offer less output and the supply curve shifts to the left."},{"text":"right","correct":false,"explanation":"A rightward shift indicates increased supply and normally follows falling costs. Higher unit costs reduce profitability, so supply shifts to the left."},{"text":"origin","correct":false,"explanation":"The standard directional description is not a shift towards the origin. Higher costs reduce quantity supplied at every price, shifting the supply curve to the left."},{"text":"quantity axis","correct":false,"explanation":"A shift towards the quantity axis does not represent the standard effect of rising costs. Higher unit costs decrease supply, causing a leftward shift."}]},{"id":"efc75e72-ed4f-4176-9d56-7f84c0addb1b","cardType":"basic","points":2,"front":"Why do lower unit costs increase supply at a given price?","back":"Units become more profitable, so firms supply more.","mcqOptions":[{"text":"Units become more profitable, so firms supply more.","correct":true,"explanation":"With a given selling price, lower cost per unit increases the profit earned on each unit. Firms therefore become willing and able to supply more."},{"text":"Units become less profitable, so firms supply more.","correct":false,"explanation":"This reverses the profitability effect: lower unit costs raise, rather than reduce, profit per unit. Units become more profitable, giving firms an incentive to supply more."},{"text":"Units become more expensive, so firms supply more.","correct":false,"explanation":"Lower unit costs make production cheaper, not more expensive. The resulting increase in profit per unit makes units more profitable, so firms supply more."},{"text":"Units become more profitable, so firms supply less.","correct":false,"explanation":"This reverses firms' normal response to stronger profit incentives. Lower unit costs make units more profitable, encouraging firms to increase rather than decrease supply."}]},{"id":"3f7b79ff-a010-4a4a-bf72-f6eb73e87bd3","cardType":"basic","points":2,"front":"How does robotic welding affect car supply, and why?","back":"It shifts right because cost per vehicle falls.","mcqOptions":[{"text":"It shifts right because cost per vehicle falls.","correct":true,"explanation":"Robotic welding can increase productivity and reduce labour required per car. Lower production cost makes supplying cars more profitable and shifts supply right."},{"text":"It shifts left because cost per vehicle falls.","correct":false,"explanation":"This reverses the direction of the cost effect. Falling cost per vehicle raises profitability and increases supply, so the car supply curve shifts right."},{"text":"It shifts right because cost per vehicle rises.","correct":false,"explanation":"Robotic welding is expected to improve productivity and lower cost per vehicle, not raise it. That cost reduction shifts the supply curve right."},{"text":"It shifts left because productivity per worker rises.","correct":false,"explanation":"Higher worker productivity enables more output from given inputs and typically lowers unit costs. Car supply therefore shifts right, not left."}]},{"id":"5f8752a5-f5f3-4ed4-b50d-4aebe1636ee6","cardType":"basic","points":2,"front":"How does a rise in the National Living Wage affect supply?","back":"It shifts left because labour costs rise.","mcqOptions":[{"text":"It shifts left because labour costs rise.","correct":true,"explanation":"For firms employing affected workers, a higher National Living Wage raises production costs. At each product price, less output is profitable, shifting supply left."},{"text":"It shifts right because labour costs rise.","correct":false,"explanation":"This reverses the effect of increased production costs. Higher labour costs reduce profitability at each output price, so supply shifts left rather than right."},{"text":"It shifts left because labour costs fall.","correct":false,"explanation":"A rise in the National Living Wage raises the wage cost for affected labour rather than lowering it. Higher labour costs cause supply to shift left."},{"text":"It shifts right because worker demand rises.","correct":false,"explanation":"This confuses labour-market demand with product supply. The direct supply effect comes from higher labour costs, which reduce profitability and shift product supply left."}]},{"id":"e16416f8-70a6-4a44-a3fe-5b611358ff78","cardType":"basic","points":2,"front":"How does an indirect tax affect the supply curve?","back":"It shifts left by raising unit costs.","mcqOptions":[{"text":"It shifts left by raising unit costs.","correct":true,"explanation":"An indirect tax adds to the cost associated with producing or selling each unit. Lower profitability at every price shifts the supply curve left."},{"text":"It shifts right by raising unit costs.","correct":false,"explanation":"This gets the direction of the cost effect backwards. Raising unit costs reduces the quantity firms willingly supply at each price, shifting supply left."},{"text":"It shifts left by lowering unit costs.","correct":false,"explanation":"An indirect tax raises firms' effective unit costs rather than lowering them. This reduces profitability and causes the supply curve to shift left."},{"text":"It shifts right by lowering unit costs.","correct":false,"explanation":"Lower unit costs and a rightward shift describe a subsidy, not an indirect tax. A tax raises unit costs and shifts supply left."}]},{"id":"02219aaa-5a17-4cf2-845a-1d6c6a534496","cardType":"basic","points":2,"front":"How does a per-unit subsidy affect the supply curve?","back":"It shifts right by lowering effective unit costs.","mcqOptions":[{"text":"It shifts right by lowering effective unit costs.","correct":true,"explanation":"A payment received for each unit offsets part of the producer's costs. Production becomes more profitable at every market price, shifting supply right."},{"text":"It shifts left by lowering effective unit costs.","correct":false,"explanation":"This reverses the response to falling costs. Lower effective unit costs increase profitability and quantity supplied at each price, so supply shifts right."},{"text":"It shifts right by raising effective unit costs.","correct":false,"explanation":"A per-unit subsidy reduces the producer's effective cost rather than raising it. The cost reduction increases supply and shifts the curve right."},{"text":"It shifts left by raising effective unit costs.","correct":false,"explanation":"This describes the effect of a per-unit tax rather than a subsidy. A subsidy lowers effective unit costs and shifts the supply curve right."}]},{"id":"8a0ab034-dd22-4c3f-87c7-72510c193b6a","cardType":"basic","points":2,"front":"What happens to market supply when new firms enter?","back":"Market supply shifts right because total sellers increase.","mcqOptions":[{"text":"Market supply shifts right because total sellers increase.","correct":true,"explanation":"Market supply is the sum of every firm's supply. Additional firms add their output at each price, increasing market supply and shifting it right."},{"text":"Market supply shifts left because total sellers increase.","correct":false,"explanation":"This reverses the effect of adding producers. More sellers contribute additional output at each price, so total market supply shifts right, not left."},{"text":"Market supply shifts right because total sellers decrease.","correct":false,"explanation":"Entry means the number of sellers increases rather than decreases. Their additional output raises market supply and shifts the market supply curve right."},{"text":"Market supply shifts left because total buyers increase.","correct":false,"explanation":"An increase in buyers affects market demand, not supply. New firms increase the number of sellers, causing market supply to shift right."}]},{"id":"4779c58a-d79b-4532-96d1-3c0d237aaad1","cardType":"basic","points":2,"front":"What happens to barley supply if wheat becomes more profitable?","back":"Barley supply shifts left as fields switch to wheat.","mcqOptions":[{"text":"Barley supply shifts left as fields switch to wheat.","correct":true,"explanation":"Wheat and barley compete for agricultural land. More profitable wheat attracts land away from barley, reducing barley output at each price and shifting its supply left."},{"text":"Barley supply shifts right as fields switch to wheat.","correct":false,"explanation":"Switching fields from barley to wheat reduces the resources devoted to barley. Barley supply therefore falls and shifts left rather than right."},{"text":"Barley supply shifts left as fields switch to barley.","correct":false,"explanation":"Fields switching to barley would increase barley's productive capacity and shift its supply right. More profitable wheat instead draws fields away, shifting barley supply left."},{"text":"Barley supply shifts right as fields switch to barley.","correct":false,"explanation":"That would follow resources moving into barley production, but greater wheat profitability creates the opposite reallocation. Fields switch to wheat, so barley supply shifts left."}]},{"id":"4285493c-4993-4b79-9d40-224ce681e784","cardType":"basic","points":2,"front":"How does a bumper harvest affect wheat supply?","back":"Wheat supply shifts right as crop output rises.","mcqOptions":[{"text":"Wheat supply shifts right as crop output rises.","correct":true,"explanation":"A bumper harvest produces an unusually large quantity from available farmland. More wheat is available for sale at each price, shifting supply right."},{"text":"Wheat supply shifts left as crop output rises.","correct":false,"explanation":"This reverses the effect of increased agricultural output. A bumper harvest makes more wheat available at every price, so the supply curve shifts right."},{"text":"Wheat supply shifts right as crop output falls.","correct":false,"explanation":"A bumper harvest means crop output rises rather than falls. The greater quantity available for sale increases wheat supply and shifts it right."},{"text":"Wheat supply shifts left as crop demand falls.","correct":false,"explanation":"A fall in demand would shift the demand curve, not directly explain a supply shift. A bumper harvest raises crop output and shifts wheat supply right."}]},{"id":"ef8554f1-0d74-4be9-bac7-cfc67f3c0b8f","cardType":"basic","points":2,"front":"How does drought damage affect coffee supply?","back":"Coffee supply shifts left as crop output falls.","mcqOptions":[{"text":"Coffee supply shifts left as crop output falls.","correct":true,"explanation":"Drought reduces coffee yields and the quantity producers can bring to market at each price. The resulting fall in crop output shifts supply left."},{"text":"Coffee supply shifts right as crop output falls.","correct":false,"explanation":"This reverses the effect of reduced productive capacity. Lower crop output means less coffee is available at each price, so supply shifts left."},{"text":"Coffee supply shifts left as crop output rises.","correct":false,"explanation":"Drought damage lowers crop output rather than raising it. Reduced coffee yields decrease the quantity available for sale and shift supply left."},{"text":"Coffee supply shifts right as crop demand falls.","correct":false,"explanation":"A fall in demand concerns consumers and shifts demand, not supply. Drought directly lowers crop output, causing the coffee supply curve to shift left."}]},{"id":"d3b527d9-cea5-4c5a-85a2-14af221100f7","cardType":"basic","points":2,"front":"How can a fall in crude oil prices affect supply?","back":"It shifts right because plastics, fertiliser and transport become cheaper.","mcqOptions":[{"text":"It shifts right because plastics, fertiliser and transport become cheaper.","correct":true,"explanation":"Crude oil is an input into plastics and fertiliser and influences fuel costs. A lower oil price reduces firms' costs, increasing supply and shifting it right."},{"text":"It shifts left because plastics, fertiliser and transport become cheaper.","correct":false,"explanation":"This reverses the supply response to lower input costs. Cheaper plastics, fertiliser and transport improve profitability, increasing supply and shifting the curve right."},{"text":"It shifts right because plastics, fertiliser and transport become dearer.","correct":false,"explanation":"A fall in crude oil prices tends to make these oil-dependent inputs and activities cheaper, not dearer. Lower costs shift supply right."},{"text":"It shifts left because plastics, fertiliser and transport become dearer.","correct":false,"explanation":"Dearer inputs could shift supply left, but that is the expected effect of rising oil prices. Falling crude oil prices lower costs and shift supply right."}]},{"id":"52cf0df6-1087-4588-ab62-b2d7e78a330d","cardType":"cloze","points":null,"front":"A supply shift resets the [ ].","back":"A supply shift resets the quantity supplied at every price.","mcqOptions":[{"text":"quantity supplied at every price","correct":true,"explanation":"A supply shift changes the quantity producers are willing to supply at every possible price, moving the entire supply curve rather than causing movement along it."},{"text":"price charged at every quantity","correct":false,"explanation":"A supply shift does not reset prices directly; it changes quantities offered at given prices. The correct term is quantity supplied at every price because supply shows this relationship."},{"text":"quantity demanded at every price","correct":false,"explanation":"This describes a change in demand, not supply. A supply shift resets quantity supplied at every price because production conditions change while demand remains separate."},{"text":"quantity supplied only at current price","correct":false,"explanation":"A curve shift affects the whole supply relationship, not just one observed price. The correct term is quantity supplied at every price, reflecting the complete new schedule."}]},{"id":"9810fcc3-235d-4f02-b0e8-53fc415c256e","cardType":"basic","points":1,"front":"What determines how far a cost change shifts supply?","back":"The size of the unit-cost change.","mcqOptions":[{"text":"The size of the unit-cost change.","correct":true,"explanation":"A larger change in unit cost shifts the supply curve farther, while a smaller change shifts it by less, so the size of the unit-cost change determines the distance."},{"text":"The size of the total-cost change.","correct":false,"explanation":"Total cost includes costs unrelated to each additional unit and therefore does not directly determine the shift. The correct determinant is the size of the unit-cost change."},{"text":"The size of the change in market demand.","correct":false,"explanation":"Demand changes shift the demand curve and affect equilibrium, but they do not determine how far a cost change shifts supply. That depends on the unit-cost change."},{"text":"The number of firms in the market.","correct":false,"explanation":"The number of firms can affect market supply, but it is not what measures the shift caused by a cost change. The relevant factor is the unit-cost change's size."}]},{"id":"636e4bb4-2427-4391-bd9d-7aed79ace5c1","cardType":"cloze","points":null,"front":"How far equilibrium price and quantity change after a supply shift depends on the [ ].","back":"How far equilibrium price and quantity change after a supply shift depends on the price elasticity of demand.","mcqOptions":[{"text":"price elasticity of demand","correct":true,"explanation":"Price elasticity of demand determines how strongly buyers respond to the new price, affecting the resulting changes in equilibrium price and quantity after supply shifts."},{"text":"price elasticity of supply","correct":false,"explanation":"This measures producers' responsiveness to price and concerns movement along supply, not how demand responds to a supply shift. The correct term is price elasticity of demand."},{"text":"income elasticity of demand","correct":false,"explanation":"Income elasticity measures demand responses to income changes, not the response to a changed price caused by a supply shift. The relevant measure is price elasticity of demand."},{"text":"size of the supply shift","correct":false,"explanation":"The shift's size affects the initial disturbance, but the final equilibrium response also depends on buyers' price responsiveness. The required determinant is price elasticity of demand."}]},{"id":"2098da29-ffa7-47c2-82d2-1f11bb2a5832","cardType":"basic","points":3,"front":"How does a £2 per-unit subsidy change producers' costs and the supply curve?","back":"

Effective unit cost falls by £2.
Supply shifts down and right by £2 per unit.

","mcqOptions":[{"text":"

Effective unit cost falls by £2.
Supply shifts down and right by £2 per unit.

","correct":true,"explanation":"The subsidy pays producers £2 for each unit, reducing the cost of supplying every unit by £2. Supply therefore shifts down and right by £2 per unit."},{"text":"

Effective unit cost rises by £2.
Supply shifts up and left by £2 per unit.

","correct":false,"explanation":"A subsidy lowers producers' effective cost rather than raising it, so the supply curve shifts down and right by £2 per unit, not up and left."},{"text":"

Effective unit cost falls by £2.
Supply shifts down and right by £1 per unit.

","correct":false,"explanation":"The cost direction is correct, but the shift must equal the subsidy per unit. A £2 subsidy lowers effective unit cost and shifts supply down and right by £2 per unit."},{"text":"

Effective unit cost falls by £1.
Supply shifts down and right by £2 per unit.

","correct":false,"explanation":"The subsidy reduces cost by its full amount, not half of it. Therefore, a £2 subsidy causes a £2 fall in effective unit cost and the same supply shift."}]}]}],"examCountdown":null,"heading":"2.1.4 determinants of supply","title":"2.1.4 determinants of supply Flashcards","topbar":{"backHref":"/international-a-level/economics/cie/flashcards"},"topicSidebar":"$L38"}]}],"topicId":"6d3be00c-732b-4029-a780-9c55c2fc28c0","walled":"$L39"}],"$L3a","$L3b"]