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Supply
Supply
Supply
Supply
Supply
Supply
Supply
Supply
Supply
Supply
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Transcript

  • 1. Supply Ms. Ross
  • 2. What is Supply?
    • The amount of a good or service that sellers are willing and able to offer for sale at various prices in a given time period, all other things remaining the same.
    • Supply is represented by the entire supply schedule and curve.
  • 3. What is quantity supplied?
    • The amount of a good or service that sellers are willing and able to offer for sale at a particular price in a given time period, all other things remaining the same.
  • 4. What is the Law of Supply?
    • There is a direct relationship between price and quantity supplied.
    • As price goes up, quantity supplied goes up.
    • As price goes down, quantity supplied goes down.
  • 5. Change in Quantity Supplied?
    • A change in quantity supplied indicates a movement along the curve. The only thing that has changed is the price of the good or service.
    • Think of the supply curve as a street – you can only move up and down the street when the price changes.
  • 6. Law of Diminishing Returns
    • As more units of a variable input are added to one or more fixed inputs, eventually the number of additional units of output will begin to fall.
    • This occurs because the fixed input is spread more and more thinly across the growing number of variable inputs.
  • 7. Happy Economics Day!!! 7 6 5 4 3 2 1 0 Value of Marg. Prod. Marginal Product # of cards # of workers
  • 8. Law of Diminishing Returns
    • Output: greeting cards
    • Variable resource: workers
    • Fixed Resources: capital – 2 markers, desk, chair, scissors and factory.
  • 9. Change in Supply
    • When there is a change in supply (increase or decrease), the supply curve shifts.
    • Using our earlier street analogy, a change in supply means you need to walk on a different street.
    • A change in supply is caused by a change in one or more of the determinants of supply.
  • 10. Determinants of Supply/Supply Shifters
    • Change in the Cost of Factors of Production
    • Change in Technology
    • Change in Profit Opportunities Producing Other Products
    • Change in the Number of Sellers in the Market
    • Change in Producers’ Price Expectations
    • Government Actions

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