S&D Supply Elasticity. Quick Review………………….. 1.Law of Supply says…. 2.What is the #1 goal of producers? 3.If the price of sugar increases, what will happen.

Slides:

Advertisements

Similar presentations

1.2 Elasticities Price Elasticity of Demand (PED)

Advertisements

Chapter 5 Some Applications of Consumer Demand, and Welfare Analysis.

Elasticity of Supply By William and Doris. The Anatomy of a Supply Graph Supply Price $$ Quantity of Supply

Law of Supply MICROECONOMICS SSEMI2

Midterm Evaluation What can you do to help yourself?  Come to class, pay attention, read the book, come see me for help, and study more What can I do.

.  The degree to which a product’s demand and supply curve react to price determines whether the good is price elastic or price inelastic.  If the.

1. What does the Law of Supply state?

PES measures the responsiveness of quantity supplied to a change in price. -it is the mathematical relationship between ∆P and ∆Qs PES = %ΔQs %ΔP PES is.

Law of Supply and Elasticity of Supply Supply: the amount of goods available.

TAXES! Why do I tax all the time?. How Taxes Affect Market Outcomes Market not efficient – Total surplus not maximized When a good is taxed, the quantity.

Chapter 5 The Law of Supply  When prices go up, quantity supplied goes up  When prices go down, quantity supplied goes down.

Economics: Principles and Practices

Supply Notes. Quantity Supplied Is the quantity of a good or service producers are willing and able to sell at the particular price during a specified.

Supply and Demand at Work 21.3 & What is Supply and Demand The amount of goods a producer is willing to sell at market prices. Opposite of demand.

Chapter 5 Section 1.  Supply – the amount of goods available  Law of Supply ◦ Producers offer more of a good as its price increases and less as its.

Demand. Demand Demand: o the desire to own something and the ability to pay for it The Law of Demand states that as prices decrease people are willing.

Price Elasticity of Demand What is it (in simple language)? It’s how much buyers will respond to a change in price. It’s the percentage change in quantity.

“Chapter 5: Supply” Focus during this chapter – How producers act.

Chapter 3 Demand and Supply. Circular Flow Model  What things flow from each sector of the economy?  From Firms?  From Households?

SUPPLY AND DEMAND. DEMAND CURVE QUANTITY 0 D D Price Quantity PRICE.

1 Essential Question: Explain why supply is considered to be “producer” controlled, describe the relationship between supply and price according to the.

Period 5 Daily Writing Prompt What is the income effect?

P RICE ELASTICITY OF SUPPLY Price elasticity of supply measures the responsiveness of the quantity supplied of a product to a change in price. There are.

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.

4 Types of Elasticity Elasticity Wrap-Up. 3 other Types of Elasticity Cross-price elasticity of demand –between 2 goods Income Elasticity of Demand Elasticity.

What happens to price and quantity for a firm when it is faced with a lump – sum tax/subsidy? Explain. Question 1.

Copyright © 2004 South-Western 5 Elasticity and Its Application.

Chapter 5: Supply Section 1. Slide 2 Copyright © Pearson Education, Inc.Chapter 5, Section 1 Objectives 1.Explain the law of supply. 2.Interpret a supply.

Supply (The Business Point of View) Another Key Economic Concept.

Supply Curve. Supply - Defined  Supply: the quantity of goods and services that producers are willing to offer at various possible prices during a given.

Chapter 5 - Supply Law of Supply Suppliers (Producers) will offer more goods and services for sale at higher prices and less at low prices. Price and.

Copyright © 2004 South-Western/Thomson Learning Elasticity = Responsiveness Allow us to analyze S & D with greater precision. Are measures of how much.

 The law of demand says:  An increase in price causes a decrease in quantity demanded (and vice-versa)  But how much does quantity demanded change in.

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.

What is Demand? Demand is the quantity of a product that consumers are willing and able to buy at a certain price. Only people with Desire Ability Willingness.

Unit 2 Notes. Voluntary Exchange A market is created wherever a buyer and seller meet Both buyer and seller decide they are better off after the transaction.

Supply I. Basics A.Definition: the amount of a product that is offered for sale at all possible prices that exist in the market.

Question: Are all products subject to the laws of supply and demand? Why or why not? What products may not be effected by the laws of supply and demand?

Effect of a tax on price and quantity S + tax S O P1P1 Q1Q1 D P Q.

ELASTIC AND INELASTIC DEMAND AND SUPPLY Demand Elasticity is the change in price that causes a change in the quantity demanded. However-some things don’t.

Supply.  Supply is based on decisions made by producers in various types of businesses.  Supply is the amount of a product that would be offered at.

EQUILIBRIUM, PRICE CONTROLS, & ELASTICITY SSEMI2c, 3b: Explain and illustrate the effects of price floors and ceilings.

Elasticity of Supply Unit 5.4. Elasticity and Supply Elasticity with supply works just like elasticity with demand. Suppliers look at the amount of change.

Supply A relation showing the quantities of a good producers are willing and able to sell.

Setting Prices Advantages of prices –Prices are neutral because they do not favor the buyer or the seller. They are the result of competition Prices are.

Chapter 7 Demand & Supply Demand & Supply. Demand the amount of a good or service that consumers are able and willing to buy at various possible prices.

Chapter 5--Supply. What is Supply? Supply is the amount of a good or service which is available.

Supply Elasticity. Remember, Supply means the goods and products that are being brought to the market for sale. Supply elasticity – how changes in price.

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.

Elasticity When the price of an item changes, the change in demand or supply can vary a little or a lot.

Elasticity of Supply Responsiveness of producers to a change in the price of their goods or services Elasticity of supply is measured as the ratio of proportionate.

Elasticity of Demand.

What you need to know.

The Price System at Work Pgs. 142 – 148

BUSINESS HIGH SCHOOL-ECONOMICS

A market with a price ceiling

Focus Question, then turn them in TODAY!

Review What is the law of Demand?

Unit 2: Supply, Demand, and Consumer Choice

Which one of these supply curves is elastic? Curve A Curve B

Unit 2: Supply, Demand, and Consumer Choice

Producers and Supply.

S&D Supply Elasticity.

Supply Economics Unit 4, Lesson 1

AP MICROECONOMICS Mr. Lindquist Module 48

Supply and Demand Review Game

An Introduction to Supply

Presentation transcript:

S&D Supply Elasticity

Quick Review………………….. 1.Law of Supply says…. 2.What is the #1 goal of producers? 3.If the price of sugar increases, what will happen to the supply of cakes? 4.If more clothing stores go online, what will happen to the supply of clothes? *** 5.If the technology to make 3D tvs improves, what will happen to the supply?

Supply Elasticity Some items will respond more to price change than others ELASTIC: supply responds to price changes –Supply of workers Nurses’ wages increase, supply of workers will increase

IN elastic Supply doesn’t (or can’t) respond too much to price change –Farming: price of corn increase, can’t increase supply immediately –Gas: can’t increase production quickly

Is gold supply elastic or inelastic? Explain.

Gold Short term = inelastic. Elasticity refers to change in quantity produced/demanded that results from a change in price. If a large price increase produces a large supply increase, then elastic. If the supply increase is small, then inelastic. Gold supply is hard to increase, so inelastic.