Law of supply

860 views

Published on

Law of supply

Published in: Education, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
860
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
79
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Law of supply

  1. 1. Law of Supply
  2. 2. The Law of Supply When people are willing to buy at a high price the producer will make more items The Law also says the lower the price people are willing to pay, the fewer items the producer will be willing to make
  3. 3. Supply Curve Incentive of Greater Profits: The higher the price of a good the greater the incentive is for a producer to produce more Each point on a supply curve signifies that a producer will supply a certain quantity at each price
  4. 4. Determinants of Supply Price of Inputs: Price of raw materials and wages Number of firms in the Industry, number of businesses competing for your business Taxes, more taxes means the cost of production goes up Technology, improvement in technology means producing goods cheaper
  5. 5. Law of Diminishing Returns Adding units of one factor of production (Labor) to other factors of production (equipment) after some point out put or efficiency will actually decrease
  6. 6. Putting Supply and Demand Together Equilibrium Price- The price at which the amount supplied by producers is equal to the amount consumers are willing to buy
  7. 7. 4 Square Shortage- When consumers buy more than producers are willing to make Surplus-When producers supply more than the consumers are willing to buy Price Ceilings- A legal maximum price that may be charged for a good or service Price Floor- a Legal minimum price that may be charged for a good or service
  8. 8. Political Cartoon Convert a news article into a political cartoon, or cartoon strip. Use construction paper and markers to draw cartoon Make sure there is dialogue to explain article

×