The theory of supply The amount producers are able and willing to offer for sale at a given price over a period of time.

Slides:

Advertisements

Similar presentations

Change in S vs. Change in Qs

Advertisements

Change in S vs. Change in Qs Unit Three, Lesson Two Economics.

Change in S vs. Change in Qs

PRINCIPLES OF ECONOMIC  Supply  Law of Supply  Changes in Supply  Elasticity of Supply  Equilibrium of Demand& Supply BY Ms. Samina Ansari Lecturer.

How Markets Work A Change in Supply. When any other factor affecting supply of a good other than its price changes, there is a change in supply curve.

How Markets Work Supply. If firm supplies a good or a service, the firm: 1.Has the resources and technology to produce it, 2.Can make profit from producing.

Markets and Supply Overheads. Competitive agents A buyer or seller (agent) is said to be competitive if the agent assumes or believes that the market.

Supply Supply is the quantity of a good that firms are willing to produce at various prices over a particular period of time.

The Market System Demand, Supply and Price Determination.

Change in Supply What’s the difference between the change in quantity supplied and a change in supply? What causes a change in supply (non-price determinants)?

Determinants of Supply

Chapter 4 Demand and Supply. The Market can be a location, network of buyers and sellers for a product, demand for a product or a price-determination.

LAW OF SUPPLY. Focus Activity P Q 0 S What does this tell you about the Law of Supply?

Drill 9/17 Determine if the following products are elastic or inelastic: 1. A goods changes its price from $4.50 to $5.85 and the demand for the good goes.

We are studying this chapter on context of determination of PRICE OF A GOOD. Demand and supply are two forces that determine the price of a good.

Supply Analysis.

Chapter 21.1 What is Supply?. An Introduction to Supply  Supply refers to the various quantities of a good or service that producers are willing to sell.

Supply ©2012, TESCCC Economics Unit 4, Lesson 1. Objectives 1.Define supply. 2.Explain the law of supply. 3.Analyze the relationship between cost of production.

Supply and Demand Supply. The willingness and ability of potential sellers to offer various amounts of goods at various prices at various times Businesses.

Price As price increases… Supply Quantity supplied increases Price As price falls… Supply Quantity supplied falls.

Demand and Supply Chapter 3. Demand demand is a schedule that shows the various amounts of a product consumers are WILLING and ABLE to BUY at each specific.

Demand and Supply Krugman Section Modules 5-7. Demand demand is a schedule that shows the various amounts of a product consumers are WILLING and ABLE.

SUPPLY AND DEMAND (AND GRAPHING APPLICATIONS). SUPPLY AND DEMAND: MODELING A COMPETITIVE MARKET  For a market to be competitive, there has to be several.

Supply Q: Why is advice so cheap? A: Because supply always exceeds demand.

1.Define supply & the Law of Supply. 2.Understand the difference between the supply schedule & supply curve. 3.Specify the reasons for a change in quantity.

Supply. Quantity Supplied Amount of any good or service that sellers are willing and able to sell Law of Supply: Other things equal (ceteris paribus),

Supply AS Economics. What is supply? Supply is the quantity of a product that producers are willing and able to provide at different market prices over.

“Supply, Demand, and Market Equilibrium”. Demand Review 1. What is Demand? 2. Give an example of substitute goods 3. Give an example of complementary.

Chapter 5.1/5.3/5.4 Supply. Intro to Supply Supply – the amount of a product offered for sale at all possible prices Law of Supply – as P goes up, Qs.

Chapter 5.1.  Supply is the willingness and ability of sellers to produce and offer to sell different quantities of a good at different prices during.

Supply.  The various quantities of a good which producers are willing and able to offer for sale at a given time at different possible prices  Suppliers.

Demand and Supply Chapters 4, 5 and 6. Demand demand is a schedule that shows the various amounts of a product consumers are WILLING and ABLE to BUY at.

Chapter 5 - Supply Supply – the amount of a product that would be offered for sale at all possible prices in the market. Law of Supply – suppliers will.

Understanding Supply What is the law of supply?

Supply The amount of a good or service that producers are willing and able to offer 2 Criteria must be present Must be willing to supply Must be able to.

Surplus (a.k.a. excess supply):

Market Demand and Supply

Demand, Supply, and Market Equilibrium

Supply and Demand #2.

P2Session 3 SUPPLY CONCEPTS.

Starter Activity In pairs consider what might cause

2.6 Supply Explain what is meant by supply Construct a supply curve

What determines the supply of a good or service in a market?

Definition of Supply Supply represents how much the market can offer. It indicates how many product producers are willing and able to produce and offer.

The Demand and Supply Model

Chapter 5.1/5.3/5.4 Supply.

Warm-up True or False If only the price changes, the entire demand curve will move. Gaining or losing income will cause the demand curve to move right.

2.6 Supply Explain what is meant by supply Construct a supply curve

Supply Unit 2: Supply and Demand.

What is supply?.

Understanding Supply.

SUPPLY Quantity supplied is the amount of a good that sellers are willing and able to sell. Law of Supply The law of supply states that, other things equal,

Supply & Demand # 5 What is Supply?.

The theory of demand The amount consumers are willing to purchase at a given price over a period of time.

Demand: Desire, ability, and willingness to buy a product

Supply Unit 2: Supply and Demand.

Understanding Supply HSCE

Define the theory of demand What are the 3 laws of demand

Define the theory of supply

Introduction to Supply

Chapter 4 Demand and Supply.

Define the theory of supply

Define the theory of demand What are the 3 laws of demand

Presentation transcript:

The theory of supply The amount producers are able and willing to offer for sale at a given price over a period of time.

Price per pair of socks (£) Quantity Supplied (1st Quarter) The supply schedule for Soneji’s Super Socks The amount producers are able and willing to offer for sale at a given price over a period of time Price per pair of socks (£) Quantity Supplied (1st Quarter) 1 1.50 2 10 2.50 15 3 20 3.50 25 4 30 4.50 35 5 40 5.50 45 6 50

The laws of supply As price rises, supply will rise. As price falls, supply will fall. The supply curve slopes upwards from left to right. Price (p) s Quantity suuply (Qs)

Movements along the supply curve (an extension in supply) Movements along the supply curve are caused by a change in price. An extension in supply is brought about by a rise in price. Manufacturers are willing to supply more as a greater profit can be made at the new price. p s extension in supply p2 p1 Qs Qs1 Qs2

Movements along the supply curve (a contraction in supply) Movements along the supply curve are caused by a change in price. A contraction in supply is brought about by a rise in price. Manufacturers will cut supply as less profit is made at the new price. p s contraction in supply p1 p2 Qs Qs2 Qs1

Shifts in the supply curve The determinants of supply are forces behind market supply. A change in any one of these will affect market supply . Any changes in the determinants of supply will cause the entire supply curve to shift across. positive change in the determinants of supply will cause the supply curve to shift across to the right. A negative change in the determinants of supply will cause the supply curve to shift across to the left.

The determinants of supply A change in factor prices. A change in the availability of raw materials. A change in technology. A change in the number of firms in the market . A change in government legislation.

Price per pair of socks (£) The supply schedule for Soneji’s Super Socks The amount producers are able and willing to offer for sale at a given price over a period of time Price per pair of socks (£) Quantity supplied (1st Quarter) (2nd Quarter) 1 1.50 2 10 20 2.50 15 25 3 30 3.50 35 4 40 4.50 45 5 50 5.50 55 6 60

A positive change in the determinants of supply A fall in factor prices. An improvement or new resource An improvement in technology. A reduction in the number of firms in the market . A change in government legislation in favour of the business. More is supplied at each price p s1 s2 p1 Qs qs1 qs2

Price per pair of socks (£) The supply schedule for Soneji’s Super Socks The amount producers are able and willing to offer for sale at a given price over a period of time Price per pair of socks (£) Quantity supplied (2nd Quarter) (3rd Quarter) 1 1.50 2 20 10 2.50 25 15 3 30 3.50 35 4 40 4.50 45 5 50 5.50 55 6 60

A negative change in the determinants of supply A rise in factor prices. A reduction or loss of a resource. Technology ? An increase in the number of firms in the market . A change in government legislation in against the business. Less is supplied at each price p s2 s1 p1 Qs qs2 qs1

The total supply of all goods and services in an economy. Aggregate supply The total supply of all goods and services in an economy.