1. SUPPLY

2. SUPPLY
The amount of a good sellers (producers) are willing and able to sell at every price
Flu Shot

3. Quantity Supplied Increases
Law of Supply
When Price Increases
Quantity Supplied Increases

4. Ben’s Supply Schedule
No-Friends Rabbit
No-Friends Rabbit 29

5. Supply Curve
The supply curve is the graph of the relationship between the price of a good and the quantity supplied. 29

6. Figure 5 Ben’s Supply Schedule and Supply Curve
Price of
Price of rabbits
Quantity of rabbits supplied
$0.00
.50
1.00 1
1.50 2
2.00 3
2.50 4
3.00 5
No-Friends
Rabbit
$3.00
2.50
1. An
increase
in price
...
2.00
1.50
1.00
0.50 1 2 3 4 5 6 7 8 9 10 11 12
Quantity of
No-Friends Rabbit 2.
...
increases quantity of rabbits supplied.

7. Elasticity of Supply
Measure of how much suppliers respond to a change in market conditions.

8. What determines if the supply of a good is elastic or inelastic?
The type of resources that are used to produce the product play a major role in the elasticity of supply of the good or service
What determines if the supply of a good is elastic or inelastic?

9. Resources and Elasticity
The harder the good or service is to produce, the more inelastic it is
The easier the good or service is to produce, the more elastic it is.

10. BRAIN BUSTA!
Think of an apple. What is the major resource that determines whether an apple is elastic or inelastic?
TIME!

11. Short Run vs. Long Run Elasticity
Over time, supply of products become more elastic
Initially, supply is usually more inelastic

12. Supply Activity
In your bell work, write 3 goods or services, they can be anything
Look at items and decide whether the supply of that good or service is elastic or inelastic. (please explain you reasons)