Shifts vs. Movement Along the Curve

Econ

A new technology is developed that allows smartphone manufacturers to produce phones 30% faster with the same resources. What effect does this have on the supply curve for smartphones?

The supply curve shifts right, increasing supply

Due to increased consumer demand, the price of electric vehicles rises from $35,000 to $42,000. What' happens to the quantity supplied of electric vehicles?

There is movement up along the supply curve, increasing quantity supplied

A severe drought destroys 40% of wheat crops in the Midwest. How does this natural disaster affect the supply curve for wheat?

The supply curve shifts left, decreasing supply

The government provides a $5,000 subsidy to each solar panel manufacturer to encourage renewable energy production. What is the most likely effect on the supply curve for solar panels 

The supply curve shifts right because production costs are reduced

Steel workers negotiate a 15% wage increases across the industry. How does this affect the supply curve for automobiles that use steel as a major input?

The supply curve shifts left because production costs have increased

Coffee shop owners expect coffee bean prices to increase significantly next month. What is their most likely response this month?

Increase current supply to sell before prices rise

A trade war results in 20 new companies entering the American furniture market to replace imported furniture. What happens to the supply curve for furniture?

The supply curve shifts right due to more sellers in the market

Market research shows that consumers are willing to pay higher prices for organic vegetables, so the price increases from $3 to $5 per pound. What happens in the organic vegetable market?

There is movement up along the existing supply curve

The government imposes a new $2 per pack tax on cigarettes that manufacturers must pay. How does this affect the supply curve for cigarettes?

The supply curve shifts left because production costs increase

A hurricane destroys several oil refineries along the Gulf Coast. What is the immediate effect on the supply curve for gasoline?

The supply curve shifts left due to reduced production capacity 

Farmers expect corn prices to fall dramatically next season due to a predicted oversupply. How are they likely to respond this season?

Increase current supply to sell before prices drop

New environmental regulations all factories to install expensive pollution control equipment costing $2 million each. What effects does this have on the supply curve for manufactured goods?

The supply curve shifts left because of increased production costs

Automation technology allows car manufacturers to replace 30% of their assembly line workers with robots, reducing labor costs significantly. What happens to the supply curve for automobiles?

The supply curve shifts right because production costs decrease

A free trade agreement eliminates tariffs, allowing 15 new foreign companies to enter the domestic smartphone market. What is the effect on the supply curve for smartphones?

The supply curve shifts right due to more suppliers in the market

The price of copper, a key input in electrical wiring, decreases by 25% due to new mining discoveries. How does this affect the supply curve for electrical wiring?

The supply curve shifts right because production costs have decreased

A company announces it will stop producing a poplar gaming console next year. Economists would classify this announcement as affecting which supply determinant, and what economic term best describes the market’s immediate response?

Future expectations; market equilibrium shifts toward shortage

A pharmaceutical company discovers that a key ingredient in their medication will become 40% more expensive next quarter due to new mining regulations. The company immediately begins stockpiling the current cheaper supply. What supply determinant is primarily driving this decision.?

Input prices

An airline company expects jet fuel prices to drop significantly in six months due to new oil discoveries. Currently, fuel represents 35% of their operating costs. The company decides to reduce flights this quarter and increase of which supply determinant?

Future expectations- anticipated cost changes are driving current production decisions