EC 252 (WI22): Chapter 3 by Erica Orians https://padlet.com/ericaorians/oy9jjx8qt68vllpg Chapter 3 Collaborative Study Guide en-us 2022-01-04 14:33:13 UTC 2024-05-27 18:49:47 UTC hello@padlet.com Instructions: View instructions on the section padlet. ericaorians https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/1974310460 2022-01-04 14:33:13 UTC https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/1974310460 Team: Students will do one chapter per section. View your assigned padlet at this link. ericaorians https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/1974310462 2022-01-04 14:33:13 UTC https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/1974310462 Supply ericaorians https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/1974328585 2022-01-04 14:39:56 UTC https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/1974328585 ericaorians https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/1974371712 2022-01-04 14:57:05 UTC https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/1974371712 Individual Supply Curve isabellapatterson https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/1996514723 -Graph that plots the quantity of a specific item a business intends to sell at a given price.
-Summary of a business' selling plans.
-They hold other things constant. ]]> 2022-01-17 19:46:24 UTC https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/1996514723 Law of Supply isabellapatterson https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/1996527322 -Tendency for the quantity supplied to be higher when the price is higher.
-Means supply curves slope in an upwards motion since the higher the price, the higher the quantity supplied. ]]> 2022-01-17 19:55:42 UTC https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/1996527322 The Law of Supply Quick View isabellapatterson https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/1996528396 2022-01-17 19:56:41 UTC https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/1996528396 Supply Shortages in 2022 isabellapatterson https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/1996534739 I found this article to be pretty interesting! Not only does it talk about why the supply is low, such as shipping issues and the human factor of things, but also what the changes are on the large-scale chain. ]]> 2022-01-17 20:01:38 UTC https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/1996534739 Supply Issues in 2022 isabellapatterson https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2001665370 This video is short and pretty interesting! It talks about how supply has changed from the start of the pandemic and now. ]]> 2022-01-19 23:57:32 UTC https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2001665370 Supply Curve Help isabellapatterson https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2001668666 Here's a link to a video explaining the supply curve in case you're like me and more of a visual learner! ]]> 2022-01-20 00:01:23 UTC https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2001668666 Even the Girl Scouts are impacted by supply issues! ericaorians https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2002638227 2022-01-20 11:45:44 UTC https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2002638227 Individual Supply Curve and The Rational Rule for Sellers kayleighoverley https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2007882354 2022-01-24 03:25:49 UTC https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2007882354 Movement and Shifts in the Supply Curve kayleighoverley https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2007883704 2022-01-24 03:26:53 UTC https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2007883704 Rational Rule for Sellers kayleighoverley https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2007897522 Sell one more item if the price is greater than or equal to the marginal cost
-To maximize profits, keep applying the Rational Rule for Sellers until price = marginal cost]]> 2022-01-24 03:38:50 UTC https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2007897522 Grocery Store Shortages kayleighoverley https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2007923888 This article gives a few reasons why you might see some empty shelves in the grocery store. ]]> 2022-01-24 03:59:54 UTC https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2007923888 Movement and Shifts Along the Supply Curve kayleighoverley https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2007947166 2022-01-24 04:19:13 UTC https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2007947166 https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2007954854 Fun video for a deeper understanding of supply curves]]> 2022-01-24 04:24:51 UTC https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2007954854 Applying Principles Supply Curve LoganJRussell https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2007958462 2022-01-24 04:28:03 UTC https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2007958462 Shifts in the Supply Curve kayleighoverley https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2007963254 Rightward shift- increase in supply
Leftward shift- decrease in supply

Factors that shift the supply curve:
1. Input prices
2. Productivity and technology
3. Prices related to outputs
4. Expectations
5. The number of sellers and type

1-4: Shift individual and market supply
5: Only shifts market supply]]> 2022-01-24 04:32:05 UTC https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2007963254 Chip Shortage LoganJRussell https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2008000467 2022-01-24 05:03:42 UTC https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2008000467 Market Supply Curve Gavin_Savercool https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2009907051 -A graph plotting the the total quantity of an item supplied by the entire market, at each price 
-Market supply curves are built from individual supply curves. Arrivals and exits from businesses to the market must be considered.
- Because market supply curves are built from individual supply curves, factors that shape individual supply curves, like rising marginal cost, also shape market supply 
-Market supply curves follow the law of supply, therefore it is upward-sloping]]> 2022-01-24 22:20:03 UTC https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2009907051 Substitute-in-production Gavin_Savercool https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2009919778 -Alternative uses for resources. Supply of a good will decrease if the price of a substitute-in-production rises. 
-A distillery may produce less vodka if the price for hand sanitizer rises. Alcohol would be the original good an the hand sanitizer would be the substitute-in-production
-In contrast to complements-in-production ]]> 2022-01-24 22:33:32 UTC https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2009919778 Complements-in-production Gavin_Savercool https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2009927725 -Goods that are made together. Supply of a good will increase if the price of a complement-in-production rises. 
-Molasses is a byproduct of sugar refining. If the price of molasses were to rise, sugar refineries would be more profitable and production of sugar and molasses would increase. 
-In contrast to substitutes-in-production ]]> 2022-01-24 22:42:27 UTC https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2009927725 How substitutes-in-production and complements-in-production effect supply curves Gavin_Savercool https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2009933632 2022-01-24 22:48:14 UTC https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2009933632 The relationship between individual & market supplies and estimating market supply Gavin_Savercool https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2009937991 2022-01-24 22:52:20 UTC https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2009937991 Gavin_Savercool https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2009953384 2022-01-24 23:12:14 UTC https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2009953384 Gavin_Savercool https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2009986568 This article discusses a new way to gauge disruptions within the supply chain using data related to international shipping and manufacturing costs]]> 2022-01-24 23:55:07 UTC https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2009986568 Marginal Product and Diminishing Marginal Product sherrysokolowski https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2010106192 MARGINAL PRODUCT: the extra output you obtain from an additional unit of input. For example, hiring one additional worker.

DIMINISHING MARGINAL PRODUCT*: The marginal product of an input declines as you use more of that input.

*It's important to note that diminishing marginal product does not necessarily mean that extra inputs will reduce output (see page 70). ]]> 2022-01-25 01:41:41 UTC https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2010106192 Perfect Competition in Relation to Setting Prices sherrysokolowski https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2010134010 PERFECT COMPETITION occurs in a market when...
  1. all firms in the market are selling an identical good
  2. there are many buyers and sellers who are all very small in relation to the total size of the market. 
In perfectly competitive markets, the best price is the market price so the managers do not spend much time determining prices. This is called being a price taker, which is someone who decides to charge the price and whose actions do not affect the price. 

For more information, check out page 66. 
]]> 2022-01-25 02:03:51 UTC https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2010134010 Chapter 3 Overview sherrysokolowski https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2010225382
  • Individual Supply Curve: graph showing the quantity that a business plans to sell at each price. 
    • It is upward-sloping and shows at x price, a company will sell y amount of product (pg. 63).
  • Law of Supply: the tendency for the quantity supplied to be higher when the price is higher (pg. 65).
  • Setting prices in a competitive market (pg. 66)...
    • Perfect competition: where all firms are selling an identical good and there are many buyers/sellers
    • Price-taker: someone who decides to charge the price and whose actions do not affect the price. 
    • Not ALL markets are perfectly competitive...but this chapter focuses on the ones that are.
  • When selecting the best quantity to supply, follow the 4 core principles (see chart on pg. 67). 
    • The marginal principle and cost-benefit principle are key here.
    • The opportunity cost principle also plays a role since it helps to compare other alternatives, which leads into...
  • Variable costs: costs (like labor) that change with the quantity of output produced (pg. 68).
  • Fixed costs: costs (like land) that don't change when you alter the quantity of output produced (pg. 68). 
  • Rational Rule for Sellers in Competitive Markets: sell one more item if the price is greater than (or equal to) the marginal cost (pg. 68-69). 
    • Combines the marginal, cost-benefit, and opportunity cost principles.
    • This rule allows sellers to maximize their profits and tells them to continue selling into price = marginal cost.
      • Because of this, your supply curve is your marginal cost curve and it can reveal your marginal costs.
  • Diminishing marginal product leads to rising marginal costs (pg. 70). 
    • Marginal product: the increase in output that comes from an additional unit of an input (like labor). 
    • Diminishing marginal product: the marginal product of an input declines are you use more of that input. 
  • Marginal costs can also rise because costs of the inputs may rise (pg. 71). 
    • ***Individual supply reflects marginal costs***.
  • The market supply curve is upward-sloping. Higher price leads to a larger quantity supplied because... (pg. 73): 
    • Higher price leads individual businesses to supply a larger quantity.
    • Higher price means more businesses are supplying their goods/services and a lower prices means less businesses are supplying their goods/services.
  • Movement along the supply curve: when a price change causes movement from one point (on a fixed supply curve) to another point on the curve. 
  • Change in the quantity supplied: the change in quantity associated with movement along a fixed supply curve. 
    • ]]>     2022-01-25 03:17:19 UTC https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2010225382     Shifting Supply Curves Overview sherrysokolowski https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2010271601 Increase in Supply: a shift of the supply curve to the RIGHT.
    Decrease in Supply: a shift of the supply curve to the LEFT.

    5 Key Factors that Shift the Supply Curve (pg.75):
    1. Input Prices
    2. Productivity and technology 
    3. Prices of related outputs
    4. Expectations 
    ^all 4 shift individual supply AND market supply.
        5. The type and number of sellers (ONLY shifts market supply)

    1. INPUT (pg. 76):
    • Supply with HIGH input prices = shift to the RIGHT (up)
    • Supply with LOW input prices = shift to the LEFT (down)

       2. PRODUCTIVITY & TECHNOLOGY (pg.   76):
    • HIGHER productivity = increase in supply (shift to the RIGHT)
    • LESS productivity = decrease in supply (shift to the LEFT)
       
        3. PRICES OF RELATED OUTPUTS (pg.76-77):
    • Emphasizes the connections between different markets. 
    • Substitutes-in-production: alternative uses of your resources. Supply of a good will decrease if the price of a substitute-in-production rises. 
    • Complements-in-production: goods that are made together. Your supply of a good will increase if the price of a complement-in-production rises.
      • Supply will INCREASE (shift to the RIGHT) when: prices of substitutes-in-production fall OR if prices in complements-in-production rise.
      • Supply will DECREASE (shift to the LEFT) when: prices of substitutes-in-production rise OR prices in complements-in-production fall.

        4. EXPECTATIONS (pg. 77):
    • Supply will DECREASE (shift to the LEFT) when next year's price is expected to be higher. 
    • Supply will INCREASE (shift to the RIGHT) when next year's price is expected to be lower. 

        5. TYPE/NUMBER OF SELLERS (pg. 77):
    • Market with a SMALL amount of sellers = shift to the LEFT.
    • Market with a LARGE amount of sellers = shift to the RIGHT. 

    SHIFT vs. MOVEMENT (pg. 78-79):
    • A supply curve does NOT shift after a price change because it already shows how much a business will change its quantity it supplies if the price changes. 
    • When the PRICE changes, it is a MOVEMENT along the supply curve. 
    • When OTHER FACTORS change, there is a SHIFT in the supply curve. 

    Parallels between supply and demand curves - bottom of pg. 80.
    ]]>     2022-01-25 03:51:59 UTC https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2010271601     Similarities & Differences between Supply & Demand sherrysokolowski https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2010277727 2022-01-25 03:55:48 UTC https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2010277727 Supply and Food Pricing sherrysokolowski https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2010282223 While this article is from September 2021, it still discusses relevant issues pertaining to the prices of food, the issues with the supply chain, and how pricing is expected to slightly lessen this year. ]]> 2022-01-25 03:59:08 UTC https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2010282223 The Rational Rule for Sellers in Competitive Markets: sherrysokolowski https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2010293808 2022-01-25 04:08:00 UTC https://padlet.com/ericaorians/oy9jjx8qt68vllpg/wish/2010293808