1. Chapter 5 Supply Objective Understand the concept of supply
Be able to relate the concept of supply with the concept of demand
Be able to synthesize supply and demand and apply that synthesis to relevant, real life examples and practice.

2. Supply
The amount of goods available.

3. Law of Supply
The tendency of suppliers to offer more of a good at a higher price
How can this happen?
Trends-if something is popular people will buy more and suppliers can charge more.
This will not always last as people will also gravitate towards bargains
Target Markets

4. Examples of the Law of Supply
Every Christmas there is some sort of toy or product that everyone HAS to have….the result is that demand will temporarily outweigh supply.
As a result the demand goes up, suppliers will offer more but at a higher price.
Examples of this phenomena are:

8. Law of Supply (cont)
Believe it or not; once upon a time all of the preceding characters/products commanded top dollar.
The supplies were bumped up with an increase in price, since people had to have these items/products, they bought them anyway.

9. The Let Down
Eventually the demand for these products will die out, as this happens so will the supply and the price.

10. The Mullett
People used to pay lots of money for this..

11. Terms
Quantity Supplied-the amount a supplier is willing and able to supply at a certain price
Variable-a factor that can change; trends, popularity, ect
Elasticity of Supply-a measure of the way quantity supplied reacts to a change in price
Excise Tax-tax on luxaries

12. Supply Schedule
A chart that lists how much of a good a supplier will offer at different prices.

14. Market Supply Schedule
A chart that lists how much of a good all suppliers will offer at different prices.