“As scarce as truth is, the supply has always been in excess of the demand.”

 Define supply. (k)  Predict factors that cause changes in market supply. (i)  Describe the relationship between price and supply in the market. (k)

 Consumers demand.  Producers supply.

 Supply reflects producers’ changing willingness and ability to make or sell at the various prices that occur in the market.  If you were selling cookies or crude oil, which would entice you to produce more, a low price or a high price?  If you said low price you would quickly find yourself broke.

 Weather, land prices (think farms), widget prices, subsidies to widget producers, widget inputs, number of competitors, future price increase/decrease, taxes, availability of technology

 NOT prices – think of the question more like this: If the price of widgets go up as a widget maker you don’t make anymore.  Think of the Coke company, the local store and Mr.Welcher…

 The supply curve...we talked about this already right?  Well, lets try something first.

 Awesome! Mr.Welcher are you serious we get to make a graph? Wow! I was hoping to make a graph today. I mean seriously, I was saying to my friend, “how come we don’t get to make more graphs?” And he was all like “I know right!” But, we know that we just can’t ask to make graphs, so we thought maybe if we did a song, or dance we could do it, and you will never believe who volunteered…