Supply

NOTES 11/5

The amount of a product that would be offered for sale at all possible prices SUPPLY

Suppliers will normally offer more for sale at high prices and less at lower prices. LAW OF SUPPLY

Graph showing the various quantities supplied at each and every price that might prevail in the market. SUPPLY CURVE

Listing of the various quantities of a particular product supplied at all possible prices in the market. SUPPLY SCHEDULE

Supply curve that shows the quantities offered at various prices by all firms that offer the product for sale in a given market. MARKET SUPPLY

Amount that producers bring to market at any given price. QUANTITY SUPPLIED

Government payment to an individual, business, or other group to encourage or protect a certain type of economic activity. SUBSIDY

Change in amount offered for sale in response to a change in price. CHANGE IN QUANTITY SUPPLIED

Suppliers offer different amounts of products for sale at all possible prices in the market. CHANGE IN SUPPLY

Cost of inputs Productivity Technology Taxes and subsidies Expectations Government Regulations Number of Sellers FACTORS THAT CAUSE A CHANGE IN SUPPLY PAGE 116

1.CREATE A GOOGLE DOC TITLE ECON: SUPPLY FACTORS 2. CHOOSE 2 FACTORS SUMMARIZE AND PROVIDE ONE EXAMPLE PARTNERWORK

1.What are the factors of production? Land, labor, capital 2.According to the Law of Supply, will suppliers offer more or less for sale at a higher price. Explain. Write complete sentences and be ready to share. More 11/6 DO NOW

Measure of the way in which quantity supplied responds to a change in price. AKA: Deals with how much does a change in price affect the supply. SUPPLY ELASTICITY

Firms can adjust to new prices quickly= Elastic Firm takes longer to adjust to new prices= Inelastic SUPPLY ELASTICITY

If quantities are being purchased Demand Elasticity If quantities are being sold: Supply Elasticity DEMAND ELASTICITY VS SUPPLY ELASTICITY

Complete question 3, 4, and 5, PAGE 120

Output: What firms produce Input: What firms need to produce. Factors of Production. Raw materials: natural resources Variable: Something that can change EX: Labor: The number of worker a firm has can change from one day to the next Constant: Something that stays the same TERMS TO KNOW

The relationship between the factors of production and the output of goods and services. Short run a period of production that allows producers to change only the amount of the variable input called labor. Long run, a period of production long enough for producers to adjust the quantities of all their resources, including capital. THEORY OF PRODUCTION

In the short run, output will change as one input is varied while the others are held constant. LAW OF VARIABLE PROPORTIONS

Describes the relationship between changes in output to different amounts of a single input while other inputs are held constant. PRODUCTION FUNCTION

Total product: Total output produced by the firm.

Extra output or change in total product caused by the addition of one more unit of variable input. MARGINAL PRODUCT

Increasing returns, diminishing returns, and negative returns Based on the way marginal product changes as the variable input of labor is changed. THREE STAGES OF PRODUCTION

1.Create a chart that summarizes the three stages of production (page 125). It must include: a.Summary of each stage b.A picture that includes a boss and worker 2. Page 120 Complete question 3, 4, and 5, CLASSWORK