2.  Identify how producers & product availability influence pricing  Analyze how the agreement between buyers & sellers set prices in the market  4A Objectives:  Define supply  Define the law of supply  Explain how changes occur in supply  And my God will meet all your needs according to his glorious riches in Christ Jesus. (Philippians 4:19)

3. http://www.examiner.com/article/hurricane-irene-gains-strength-heads-toward-u-s-coast

4.  Supply: “the amount of goods & services business firms are willing & able to provide at different prices.” (65)  Law of supply: the higher the price consumers are willing to pay, the greater the quantity a firm will produce AND the lower the price consumers will pay, the smaller the quantity a firm will produce (65)  Supply schedule: “a tabular model noting the quantities of an item that suppliers are willing to produce at various prices.” (332)

5.  Supply curve: a graph of the information from the supply schedule  Change in quantity supplied: when a change in price changes the number of units supplied  Change in supply: the supply curve shifts as producers are willing to produce more (or less) of an item regardless of price.  Decrease in supply =leftward shift  Increase in supply =rightward shift  Go to WB p29

6.  1. Changes in technology  Improvements can either replace labor which reduces costs OR allow more items to be produced—the price could stay the same OR the company can produce the same amount at a lower price.

7.  2. Change in production costs:  If production cost go up a company needs to “decrease the quantity of what it provides at the same price.” (68)  3. Changes in the prices of related goods:  When the price people are willing to pay for a substitute rises, businesses are willing to sell more of it and may even decrease their production of the original product even though the price hasn’t changed. (71)

8. http://www.oldphoneworks.com/canadian-indepentent- telephone-co.-wood-wallphone.html http://www.wired.com/gadgetlab/2009/09/motorola-android/

9.  WANT, WANT, WANT!!!  And my God will meet all your needs according to his glorious riches in Christ Jesus. (Philippians 4:19)

10.  Objectives:  Explain the existence of the market equilibrium point  Describe the causes of surplus & shortage  Explain how the free market works to alleviate a surplus or shortage

11.  Market equilibrium point: “the point at which the demand curve & the supply curve for an item intersect” (329)  Market equilibrium price: “the price corresponding to the intersection of an item’s supply & demand curve; the price at which consumers are willing to buy the same quantity that suppliers are willing to produce” (329)

12.  Surplus: “an excess of unsold products resulting from a price above the market equilibrium price” (332)  Price floor: “a barrier preventing the price of an item from falling lower than a certain price” (330)  Shortage: “an insufficient supply of an item as a result of a price below the market equilibrium price” (331)  Price ceilings: “a barrier preventing the price of an item from rising above a certain price” (330) [rent in large cities]