1. Ch. 5 Supply Supply- amount of a product that would be offered for sale at all possible prices in the market Law of Supply states that suppliers will normally offer more for sale at high prices and less at lower prices. Why?

2. Supply Schedule An individual supply curve illustrates how the quantity that a producer will make varies depending on the price that will prevail in the market.

3. Supply Curve A market supply curve illustrates the quantities and prices that all producers will offer in the market for any given product or service

4. Analyze Economists analyze supply by listing quantities and prices in a supply schedule Supply Curve will have an upward slope How does the law of supply differ from the law of demand?

5. Change in Quantity Supplied A change in quantity supplied is the change in the amount offered for sale in response to a change in price. Producers have the freedom, if prices fall too low, to slow or stop production or leave the market completely. If price rises, the producer can step up production level.

6. Change in Supply When suppliers offer different amounts of products for sale at all possible prices in the market. Factors: Cost of Inputs, Productivity, Technology, Taxes or Subsidies, Gov’t Regulations, Expectations, # of Sellers

7. Elasticity of Supply A measure of the way quantity adjusts to a change in price Type of Elasticity Change in Quantity Supplied Due to a Change in Price ElasticMore than proportional Unit Elastic Proportional InelasticLess than Proportional

8. Elasticity of Supply Elastic-when a small increase in price leads to a larger increase in output-and supply Produced: Quickly Inexpensively Using few resources Inelastic- when a small increase in price causes little change in supply. Unit Elastic- change in price causes a proportional change in supply

9. Inelastic Supply Inelastic- when a small increase in price causes little change in supply. Resources not readily available Expensive to produce Ex: beach front property, precious gems, handmade items

10. Unit Elastic Unit Elastic- change in price causes a proportional change in supply

11. Law of Variable Proportions Output will change as one variable is altered, but other inputs are kept constant. What??? How is the final product affected as more units of one variable input or resource are added to a fixed amount of other resources.