Economics Chapter 5 Review

Supply Curves Concepts What are they? Movement along the curve – Causes Movement of the curve – Causes Slope of the curve

Change in Supply – Movement of the Curve Pg. 120

Concepts Supply Schedules Supply Elasticity What are they? What information do they show? How are they constructed? Supply Elasticity How do we determine elasticity?

Supply Elasticity Pg. 124

Concepts Market Supply Law of Supply e-commerce What does it show Define e-commerce Why would businesses engage in? What are the benefits?

Determining Market Supply Pg. 119

Concepts Theory of Production Production Schedule Reading the schedule Graphing the information Profit Maximizing Point MC = MR

Section 2 –Visual Summary Pg. 139

Concepts 3 Stages of Production Cost Identifying Characteristics Total Fixed Variable Marginal

Production, Costs and Revenues Pg. 134

Section 1 –Visual Summary Pg. 139

Section 3 –Visual Summary Pg. 139

Essay Questions A farmer purchases a new type of seed corn. What effect might this new technology have on her production? Why?

Essay Questions How do you think the inventions and changes in technology affect goods imported from other countries?

Essay Questions On supply curve, how does the quantity supplied change when the price increases? How is supply elasticity determined? Compare proportional changes to explain how you know. What does this tell you about the elasticity of the supply curve? Explain.

Essay Questions What causes supply of a good or service to increase as price rises? Explain your answer thoroughly.

Review Questions Page 140 – 141 21,27,36,37