1. Supply & Demand
Supply

2. Review! List an inferior good. 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? Review p.105
Give 1 reason demand might shift to the left?

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

6. Your New Business
For every empty soda can you recycle, you get 5 cents. How hard will you work to bring back the cans?
What if you got 10 cents per can?
What if you got 50 cents per can?

7. 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

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