1. Period 5 Daily Writing Prompt What is the income effect?

2. Supply Law of supply – the higher the price, the larger the quantity supplied. Quantity supplied – how much of a good is offered for sale at a specific price

3. Supply Supply Schedule – shows the relationship between price & quantity supplied

4. Supply Supply curve – graphic representation of a supply schedule

5. Elasticity of Supply Measures how businesses will respond to changes in price by producing more or less goods. Key factor is time – how quickly can suppliers change how much they produce?

6. Factors that Change Supply Production costs Technology Government taxes & subsidies Government Regulation – intervention in a market that affects price, quantity, or quality of goods.