2. 1.Define supply & the Law of Supply. 2.Understand the difference between the supply schedule & supply curve. 3.Specify the reasons for a change in quantity supplied & a change in supply. 4.Describe the concepts of elastic, inelastic & unit elastic supply.

3. supply Law of Supply supply schedule supply curve change in quantity supplied change in supply subsidy supply elasticity

4. The amount of a product that would be offered for sale at all possible prices in the market

5. Suppliers will normally offer more for sale at high prices and less at lower prices

6. Supply schedule lists various quantities of a product supplied at all possible prices (table) An individual supply curve shows how the quantity a producer will make varies directly with the price in the market (line graph) The higher that price, the more the producer will make A supply curve ALWAYS slopes upward

7. A change in quantity supplied is the change in amount offered for sale in response to a change in price Shows as a movement along the supply curve Producers have the freedom to slow or stop production if prices fall too low

8. Situation where suppliers offer different amounts of products for sale at all possible prices in the market

9. Factors that cause a change in supply (write 3 facts for each):  Cost of inputs  Productivity  Technology  Taxes and subsidies  Expectations  Government regulations  Number of sellers

10. Measure of the way quantity supplied responds to a change in price Small increase in price yields large increase in output = ELASTIC Quantity supplied changes very little = INELASTIC Change in price caused proportional change in quantity supplied = UNIT ELASTIC