Supply & Supply Curve by

jennifer_lor_082499 — 2015-11-04 15:34:35 UTC

a) Define supply & Law of Supply : - Supply : Quantities of a good or service that producers are willing to sell at all possible market prices. (Output of a single business or producer) - Law of Supply : The principle that suppliers will normally offer more for sale at higher prices and less at lower prices.

jennifer_lor_082499 — 2015-11-04 15:35:19 UTC

b) Define Supply curve & which way does the curve slope? : - Supply Curve : a graph that shows the amount of a product that would be supplied at all possible prices in the market. Unlike demand curve, the supply curve slopes upward.

jennifer_lor_082499 — 2015-11-04 15:35:54 UTC

c) Define Market Supply Curve : - Model showing the direct relationship between the price of a good or service and the quantity of that good or service supplied to the market by producers.

jennifer_lor_082499 — 2015-11-04 15:36:28 UTC

d) What factors affect supply? : - Cost of production

jennifer_lor_082499 — 2015-11-04 15:36:59 UTC

e) Define elastic supply & inelastic supply : - Elastic Supply : a measure of how the quantity supplied of a good or service changes in response to changes in price. (If the quantity changes a great deal when prices go up or down, the product is said to be supply elastic) - Inelastic supply : supply whose percentage change is less than a percentage change in price. (If the price drops a certain percentage and supply decreases only a certain percent, supply is said to be inelastic.)

jennifer_lor_082499 — 2015-11-04 15:37:26 UTC

f) Based on the warm up, are the products or services you identified elastic or inelastic supply? : - Inelastic supply

Warm-Up

jennifer_lor_082499 — 2015-11-04 15:38:04 UTC

Identify products or services that will be supplied to consumers in large quantities this month & next. : - Turkey, Potatoes, Technology, Clothing.

Law of Supply

jennifer_lor_082499 — 2015-11-04 16:04:40 UTC

- Price goes up = Quantity go up - Prices goes down = Quantity go down - Producers will offer more for sale @ a higher price than a lower price

Market supply schedule

jennifer_lor_082499 — 2015-11-04 16:06:20 UTC

Market supply curve - Total supply of all producers offering the same good/service - Upward slop indicates producers desire to sell more foods @ a higher price - Price can affect market supply curve - - consumers can dictate the high price of a product/service

Factors that affect supply

jennifer_lor_082499 — 2015-11-04 16:09:22 UTC

- Cost of resources: increase means less production of good/service - Productivity: Increased productivity of workers = lower costs; decreased productivity of workers = higher costs - Technology: new technology that can speed up production = lower costs - Government policies: gov't regulations that restrict producers = higher prices * Minimum wage, safety regulations of productions of products or businesses

jennifer_lor_082499 — 2015-11-04 16:17:10 UTC

- Taxes: Lower property taxes = lower costs - Subsidies: gov't payment; lower the costs of production - Expectations: producers guessing how much customers might buy of a product/service - Number of suppliers: number of producers making the same goods/services - - larger # of producers = greater market supply

Elasticity of supply

jennifer_lor_082499 — 2015-11-04 16:20:24 UTC

- Measure of how the quantity supplied of a good or service changes in response to changes in price - If the quantity changes a great deal when prices go up or down, the product is said to be supply elastic - Little or no change in price or quantity is inelastic supply - Rate of productivity affects the elasticity of supply (Ex. Oil is inelastic ; Ex. Candy is elastic)