Supply 1. Supply Defined What is supply? Supply is the different quantities of a good that sellers are willing and able to sell (produce) at different.

Slides:



Advertisements
Similar presentations
VERY IMPORTANT COW!.
Advertisements

Supply. Individuals control the factors of production – inputs, or resources, necessary to produce goods. Individuals supply factors of production to.
Individual Markets: Demand and Supply Chapter 3. Demand and Supply Supply.
LAW OF SUPPLY. Focus Activity P Q 0 S What does this tell you about the Law of Supply?
Chapter 5 Supply Curves Factors of Supply Supply Curve Shifts.
Unit 2: Supply, Demand, and Consumer Choice
Agenda 10/3/14 Warm Up: Diminishing Marginal Utility Law of Supply Lecture – Guided Notes Supply Practice Remember Market Watch #2 is due Monday!
Understanding Supply. Outcome: Describe the behavior of sellers in a competitive market.
Unit 2 Supply and Demand Chapter 3 Supply and Demand.
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.
Chpt. 3: Supply. Supply Quantity supplied –The amount of the good or service that producers are willing and able to sell at the current price Law of demand.
Supply 1. Supply Defined What is supply? Supply is the different quantities of a good that sellers are willing and able to sell (produce) at different.
Fall 2013 Supply. Guiding Questions What is supply? What is a supply schedule? What is a supply curve and what does it look like? What factors influence.
Supply Shift Mr. Nunn. Supply Curve A graph that shows the amount of a good sellers are willing and able to sell at various prices.
Unit 2: Supply, Demand, and Consumer Choice 1. Review with your neighbor… 1.Define scarcity 2.Define Economics 3.Identify the relationship between scarcity.
Unit 2: Supply, Demand, and Consumer Choice 1. Review 1. What is the law of demand? 2.
Warm Up Read the Starbucks article and answer the questions Have the ticket out from last class. We’ll go over the answers.
Supply and Demand 1. Demand Defined What is Demand? Demand is the different quantities of goods that consumers are willing and able to buy at different.
What is the law of Demand in your own words? Do First.
Supply.
A) supply curves are up sloping.
Unit 2: Demand, Supply, and Consumer Choice
Supply 1. 5 Shifters of Supply 2 Subsidies It is government payment to support business or market. Subsidies cause the supply of a good to increase. 1.Input.
AP Economics September 15, Review Demand 2. Begin Supply.
Unit 2: Supply, Demand, and Consumer Choice Demand Practice In-and-Out Hamburgers (a normal good) 1.Population boom 2.Incomes fall due to recession 3.Price.
Supply 1. Supply Defined What is supply? Supply is the different quantities of a good that sellers are willing and able to sell (produce) at different.
MACROECONOMICS Unit 2 1. The Circular Flow Model & Supply/Demand & Price 2.
Krugman Module 6 Supply.
Unit 2: Supply Can you see me?.
Supply and Demand Modules 5-9 Due by end of the week
Unit 1: Basic Economic Concepts
Unit 2: Demand, Supply, and Consumer Choice
Unit 2: Supply, Demand, and Consumer Choice
Supply.
Supply.
Unit 1: Basic Economic Concepts
Can you see me?.
Basic Economic Concepts
Unit 1: Demand, Supply, and Consumer Choice
Supply Supply is relationship that shows the various quantities of a good that sellers are willing and able to sell at different prices.
Unit 2: Supply, Demand, and Consumer Choice
Unit 1: Basic Economic Concepts
DO NOW If you owned a birthday cake company, what would be the minimum price that you’d be willing to sell your product if you chose to produce it? How.
RESOURCES Change in cost of inputs
Unit 1: Demand, Supply, and Consumer Choice
Unit 2: Demand, Supply, and Consumer Choice
Unit 2: Demand, Supply, and Prices
Supply!.
Supply & Demand # 5 What is Supply?.
Unit 2: Demand, Supply, and Consumer Choice
Unit 2: Supply, Demand, and Consumer Choice
Unit 2: Demand, Supply, and Consumer Choice
Supply.
Unit 2: Supply, Demand, and Consumer Choice
Change in Quantity Demanded vs. Change in Demand
Unit 2: Supply, Demand, and Consumer Choice
Market Demand, Supply and Equilibrium
Unit 1: Basic Economic Concepts
Word Match Demand Expectation of Future Price Changes
Supply.
Microeconomics Economics.
Unit 2: Supply, Demand, and Consumer Choice
Unit 1: Basic Economic Concepts
Unit 3: Microeconomics Demand, Supply, and Consumer Choice
Sutherland Module 6 Supply.
Unit 2: Supply, Demand, and Consumer Choice
Unit 2: Supply, Demand, and Consumer Choice
Unit 2: Supply, Demand, and Consumer Choice
Unit 2: Demand, Supply, and Consumer Choice
Unit 2: Supply, Demand, and Consumer Choice
Presentation transcript:

Supply 1

Supply Defined What is supply? Supply is the different quantities of a good that sellers are willing and able to sell (produce) at different prices. What is the Law of Supply? There is a DIRECT (or positive) relationship between price and quantity supplied. As price increases, the quantity producers make increases As price falls, the quantity producers make falls. Why? Because, at higher prices profit seeking firms have an incentive to produce more. EXAMPLE: Mowing Lawns 2

Example of Supply You own an lawn mower and you are willing to mow lawns. How many lawns will you mow at these prices? Price per lawn mowed Quantity Supplied Supply Schedule 3 $1 $5 $20 $50 $100 $1000

GRAPHING SUPPLY Q o $ Price of Cereal Quantity of Cereal Supply Schedule Draw this large in your notes 4 Price Quantity Supplied $550 $440 $330 $220 $110

GRAPHING SUPPLY Q o $ Price of Cereal Quantity of Cereal Supply Schedule Price Quantity Supplied $550 $440 $330 $220 $110 Supply

GRAPHING SUPPLY Q o $ Price of Cereal Quantity of Cereal Supply Schedule Price Quantity Supplied $550 $440 $330 $220 $110 Supply What if new companies start making cereal?

Change in Supply Q o $ Price of Cereal Quantity of Cereal Supply Schedule Price Quantity Supplied $550 $440 $330 $220 $110 Supply

Change in Supply Q o $ Price of Cereal Quantity of Cereal Supply Schedule Price Quantity Supplied $550 $440 $330 $220 $110 Supply

Change in Supply Q o $ Price of Cereal Quantity of Cereal Supply Schedule Price Quantity Supplied $55070 $44060 $33050 $22040 $ Supply

Change in Supply Q o $ Price of Cereal Quantity of Cereal Supply Schedule Supply S2S2 Price Quantity Supplied $55070 $44060 $33050 $22040 $ Increase in Supply Prices didn’t change but there is MORE cereal produced

Change in Supply Q o $ Price of Cereal Quantity of Cereal Supply Schedule Price Quantity Supplied $550 $440 $330 $220 $110 Supply What if a drought destroys corn and wheat crops?

Change in Supply Q o $ Price of Cereal Quantity of Cereal Supply Schedule Price Quantity Supplied $550 $440 $330 $220 $110 Supply

Change in Supply Q o $ Price of Cereal Quantity of Cereal Supply Schedule Price Quantity Supplied $550 $440 $330 $220 $110 Supply

Change in Supply Q o $ Price of Cereal Quantity of Cereal Supply Schedule Price Quantity Supplied $55030 $44020 $33010 $2201 $110 0 Supply

Change in Supply Q o $ Price of Cereal Quantity of Cereal Supply Schedule Supply S2S2 Price Quantity Supplied $55030 $44020 $33010 $2201 $110 0 Decrease in Supply Prices didn’t change but there is LESS cereal produced

Change in Supply Q o $ Price of Cereal Quantity of Cereal Supply Schedule Price Quantity Supplied $550 $440 $330 $220 $110 Supply What if cereal companies find a quicker way to make cereal?

4 Shifters (Determinants) of Supply 1.Prices/Availability of inputs (resources) 2.Number of Sellers 3.Technology 4.Government Action: Taxes & Subsidies 17

Supply Practice Hamburgers 1.Mad cow disease kills 20% of cows 2.Price of hamburgers increase 30% 3.Government taxes burger producers 4.New bun baking technology cuts production time in half 5.Minimum wage increases to $20 1.Which determinant (SHIFTER)? 2.Increase or decrease? 3.Which direction will curve shift? 18