1. What is supply?

2. Supply
Supply – the amount of a product that would be offered for sale at all possible prices that could prevail in the market.
Law of Supply – suppliers will normally offer more for sale at high prices and less at lower prices
Supply involves only producers. It is important to remember that when looking at supply, you don’t think about actions of consumers.

3. Notice how when the price goes up, the quantity of product increases.
Supply Schedule
Much like a demand schedule, the supply schedule is a chart showing various quantities of a particular product supplied at all possible prices in a market.
Notice how when the price goes up, the quantity of product increases.

4. Supply Curve
Supply Curve – a graph showing the various quantities supplied at all possible prices that might prevail in the market.
Normally a supply curve will have a positive slope which shows that when the price increases, the quantity of supply will increase.
You will see a change in the quantity supplied by moving along the curve.

5. Many different factors can increase or decrease supply.
Change in Supply
Many different factors can increase or decrease supply.
When supply is increased, the curve shifts right.
When supply is decreased, the curve shifts left.
The supply curve never shifts up or down.
Many different factors can change supply.

6. Factors causing change in supply
Cost of Resources
Productivity
Technology
Taxes and Subsidies
Expectations
Government Regulations
Number of Sellers

7. 3 Types of Supply Elasticity
Elasticity of Supply
3 Types of Supply Elasticity
Elastic – A change in price causes a change in the quantity supplied that is more than proportional
Inelastic – A change in price causes a change in the quantity supplied that is less than proportional
Unit Elastic – A change in price causes a change in the quantity supplied that is proportional

8. Elasticity of Supply
If a company can change production easily and quickly with a change in price it is likely to be elastic.