FrontPage: Give an example of 1 thing that changes quantity supplied and one that changes supply. The Last Word: Ch 5 Review due Thursday; Quiz Thursday.

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Presentation transcript:

FrontPage: Give an example of 1 thing that changes quantity supplied and one that changes supply. The Last Word: Ch 5 Review due Thursday; Quiz Thursday More Bad Newspapers

Chapter 5, Section 4

 Why was the supply of Prius vehicles considered inelastic for the first few years after its production began?  Define: elasticity of supply

Elastic Supply  Give an example of a product (not from this section) that has elastic supply. Explain why. Inelastic Supply  Give an example of a product (not from this section) that has inelastic supply. Explain why.  How is elasticity of supply similar to elasticity of demand? What Affects Elasticity of Supply?  What is the major factor that affects elasticity of supply? Why?

Price ($) Supply (violins) Perfect Inelasticity of Supply

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