Homework: Ch 5 Review due next week FrontPage: NNIGN 21 Inane Baby Products For Questionable Parents

SUPP LY Chapter 5, Section 1

Supply Supply refers to the willingness and ability of producers to offer goods and services for sale.

The Law of Supply States that producers are willing to sell more of a good or service at a higher price than they are at a lower price. –When prices decrease, quantity supplied decreases. P  Q S  –When prices increase, quantity supplied increases. P  Q S 

Supply Schedules A supply schedule is a table that shows how much of a good or service an individual producer is willing and able to offer for sale at each price in a market. A market supply schedule is a table that shows how much of a good or service all producers in a market are willing and able to offer for sale at each price.

Smith Family’s Tomato Supply Schedule Price per Pound ($) Quantity Supplied (in lbs.)

Tomato Market Supply Schedule Price per Pound ($) Quantity Supplied (in lbs.)

Supply Curves A supply curve is a graph that shows how much of a good or service an individual producer is willing and able to offer for sale at each price in a market. A market supply curve is a graph that shows how much of a good or service all producers in a market are willing and able to offer for sale at each price.

Smith Family’s Tomato Supply Curve Price per pound ($) Quantity supplied of tomatoes (lbs.)

Tomato Market Supply Curve Price per pound ($) Quantity supplied of tomatoes (lbs.)

Practice

Business Model Part I