Simple Economics Questions - Will be a quickie

[john kane]

this has to be false.

supply doesnt decrease.

[ItalianFX]

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this has to be false.

supply doesnt decrease.

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Quantity Supplied does, and that is what we are debating within the question. It's a typical teacher trying to make things harder than they should and then thinking that everyone will understand what she means, when it reality she knows less than the students.

[aditya]

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Decrease in demand of a product doesn't decrease supply, it decreases the quantity supplied. She may be getting caught up in her own words.

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ugh, it prolly was a trick question or whatever, and I think now that the answer really is false. Didn't see supply until you pointed it out lol. Meh, I think I have a real slim change of getting it right now.

Thanks BTW

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I think you still have a chance to get it right. It depends on what your teacher meant by "supply." Supply and Quantity Supplied are different things, and it wasn't clear in her question on what she was looking for.

Why do you think it is false?

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When she meant supply, she meant supply and not quantity supplied. Obv I thought she meant supply=quantity supply (in this question, I know they're different things) and thus put true. However, the teacher was trying to be tricky and she tarped me. Really sick cause who the hell associates decrease in demand curve with decrease or increase in supply curve, like virtually no one who understands these concepts. Meh, I'm about to head to class now, hopefully I get lucky.

[ItalianFX]

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A decrease in demand for a product will cause the price of the product to fall and supply of the product to decrease.


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She said "supply of the product," which to me signals quantity supplied since supplying the product is a quantity. Producers will change their supply in the market based on demand and the equilibrium price based on their own costs. A decrease in supply is not a "supply shock," meaning that a decrease in supply cannot shift the supply curve.

If your teacher wanted to test you on your ability to recognize if the supply curve would be affected, she should have said, "...and supply to shift to the left."

My opinion is still that this statement is True, and until someone can make a better argument on why it is false, I would fight this until the bitter end.

[RR]

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A decrease in demand for a product will cause the price of the product to fall and supply of the product to decrease.


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She said "supply of the product," which to me signals quantity supplied since supplying the product is a quantity. Producers will change their supply in the market based on demand and the equilibrium price based on their own costs. A decrease in supply is not a "supply shock," meaning that a decrease in supply cannot shift the supply curve.

If your teacher wanted to test you on your ability to recognize if the supply curve would be affected, she should have said, "...and supply to shift to the left."

My opinion is still that this statement is True, and until someone can make a better argument on why it is false, I would fight this until the bitter end.

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In economics supply generally applies to the supply function, not the quantity supplied. This (or a variation) is a very common question in an entry level class to make sure the student understands the difference between supply moving and moving along the supply "curve."

[ledders07]

the quantity supplied will fall at any given price per any given time period . this is what my economics teacher is emphasising, although i don;t know if this helps answer ur question.

I am studyin exactly the same thing atm and the question is ambiguous in its phrasing i think.

[ItalianFX]

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In economics supply generally applies to the supply function, not the quantity supplied. This (or a variation) is a very common question in an entry level class to make sure the student understands the difference between supply moving and moving along the supply "curve."

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Yes, I know, but the wording in the problem was confusing and not educational at all. If teachers are trying to trick their students, they are misinformed on their duties as an educator.

[steggy]

This is extremely common. The question tests your ability to shift the demand curve AND know the difference between supply and quantity supplied. Sorry, but you have no chance of getting this changed. Remember it for the final as it will probably come up again.

[RR]

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In economics supply generally applies to the supply function, not the quantity supplied. This (or a variation) is a very common question in an entry level class to make sure the student understands the difference between supply moving and moving along the supply "curve."

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Yes, I know, but the wording in the problem was confusing and not educational at all. If teachers are trying to trick their students, they are misinformed on their duties as an educator.

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There is nothing tricky about the wording of the problem. This is a very simple question/problem that a lot og undergrads struggle with. As the other poster noted you will be seeing this again.

[aditya]

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In economics supply generally applies to the supply function, not the quantity supplied. This (or a variation) is a very common question in an entry level class to make sure the student understands the difference between supply moving and moving along the supply "curve."

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Yes, I know, but the wording in the problem was confusing and not educational at all. If teachers are trying to trick their students, they are misinformed on their duties as an educator.

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There is nothing tricky about the wording of the problem. This is a very simple question/problem that a lot og undergrads struggle with. As the other poster noted you will be seeing this again.

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Haha yeah, I talked to her and she didn't change it, and I didn't expect her to either after I figured out what the mistake was. What pisses me off even more is that I had false put the first time, and after finishing test and reviewing, I looked at that question and was like wtf, why did I put false and changed it. Gah.