1. Standard SSEMI2a. Define the Law of Supply and the Law of Demand.
SSEMI3a- Identify and illustrate on a graph factors that cause changes in market supply

2. Price REVIEW: Supply Quantity Supplied
Supply is the amount of product offered for sale at all possible prices
Law of Supply: the principal that suppliers will normally offer more for sale at high prices and less at lower prices
Price
Law Of
Quantity Supplied
Supply

3. REVIEW: Supply Schedule
List of the various quantities of a particular product supplied at all possible prices in the market.
Quantity Supplied
Price

4. Price REVIEW: Supply Curve Quantity Supplied
A graph showing the various quantities supplied at each and every price that might prevail in the market.
Price
Law of Supply
Quantity Supplied

5. Right is MORE (increase) Left is LESS (decrease)
Remember:
What shifting curves:
Right is MORE (increase)
Left is LESS (decrease)

6. Supply and Quantity Supplied

7. Change in Quantity Supply
Quantity Supplied: the amount producers bring to the market at a given price
Change in quantity supplied: the change in the amount offered for sale in response to a change in price

8. A new curve is not created when the price changes!
Quantity Supplied
A change is Quantity Supplied …. DOES NOT create a different supply curve
It is a movement along the same curve!

9. Change In Supply
A situation where suppliers offer different amounts of products for sale at possible prices in the market

10. Determinants of Supply
There are 7 factors that can change supply (create a new supply curve).
We remember them with the acronym: S T E P I N G

11. Subsidies and taxes
Subsidy: a government payment to an individual, business, or other group to encourage or protect a certain type of economic activity
Firms view taxes as costs which causes the cost of production. An increase in cost moves the supply curve to the left.

12. Technology New inventions or innovation
It affects the production cost.
New technology moves the curve right.

13. Expectations How producers feel about the future of their product.
If producers think the price of their product will go up in the future, they may withhold some of the supply.

14. Productivity This is how efficient workers are.
More efficient the more the supply curve will move to the right.

15. Cost of Inputs
This is the price of factors of production that are used by producers
Cost of inputs goes up the curve shifts left
Cost of inputs goes down the curve shifts right.

16. Number of Sellers
The change in the number of suppliers causes the market supply curve to shift to the left or right.
More firms to the right… Less a shift to the left

17. Gov’t regulations Creation of new gov’t rules or laws
When government establishes new regulations, the cost of production can be affected, causing a change in supply.

18. Graphic Organizer Make a fortune teller! 4 outside parts : COLORS
8 Inside Parts::
1. Change in Quantity Supplied
2. S
3. T
4. E
5. P
6. I
7. N
8. G
Then, lift the flap, write the answer or details 