1. Supply & Demand # 5
What is Supply?

2. Review! List a product that is price elastic.
Name 2 products that are complements.
If you know a product is going on sale next week, how will demand shift this week?
Give 1 reason demand might shift to the left?
Using the graph, draw a demand curve. Then draw an increase in the change in demand.

3. Supply *Profit = Revenue ( ) – Cost
The amount of a product producers are willing & able to supply at a given price in a given time period
Producers want to maximize profit
*Profit = Revenue ( ) – Cost

4. What would you rather produce?
You make lamps that sell for $150 and cost $100 to make. OR
B. You make lamps that sell for $75 and cost $15 to make.

5. Law of Supply Quantity supplied is directly related to price
Higher price – increase supply
Lower price – decrease supply
More willing to higher prices
More able to supply if marginal cost of making more is low

6. Supply Schedule
A listing that shows the various quantities of a product supplied at all possible prices in the market.
PRICE
Quantity
SUPPLIED
$30 8
$25 7
$20 6
$15 4
$10 2 $5

7. Supply Curve
A graph showing the various quantities supplied at each and every price that might occur in the market.

8. Supply Curve in Action PRICE Quantity SUPPLIED $30 8 $25 7 $20 6 $15 4
$10 2 $5

9. Graphing Supply
Price of Pizza
Quantity Supplied $5 20
$10 50
$15 80