2. What is supply? Supply is:  The amount of a product that would be offered for sale at all possible prices that could prevail in the market. Law of Supply says:  Suppliers will normally offer more of a product or service for sale at high prices and less at lower prices.

3. Suppliers have to decide: How much to offer for sale at various prices  This is a decision that is best for the individual seller.  What’s best depends on the cost of producing the goods or services. Concept of supply can be listed in a table or a graph – supply schedule or supply curve.

4. Supply What’s a supply schedule?  Listing of various quantities of a particular product supplied at all possible prices in the market. Individual supply curve – a graph showing the various quantities supplied at each and every price that might prevail in the market. Market supply curve – shows the quantities offered at various prices by all firms that offer the product for sale in a given market.

5. Illustration of Supply Schedule & Supply Curve Individual and Market (page 115 of textbook) Supply curve slopes from lower left corner of the graph to the upper right corner. It’s a positive slope & shows that if one of the values goes up, the other will go up too. We could be suppliers too – supplying labor – doesn’t have to be products.

6. Change in Quantity Supplied Quantity supplied is amount that producers bring to market at any given price. Change in quantity supplied is the change in amount offered for sale in response to a change in price.

7. What are the determinants of supply? In other words, what determines if a producer will offer more or less of a product/service for sale as the same price. There are 7 factors that can cause a change (shift) in supply. A change or shift in supply means that you are willing to offer more of a product for sale at the same price. List them on your sheet of paper.

8. Change in Supply Change in Cost of inputs (labor prices increase/decrease – workers’ salaries) Increase/decrease in productivity Technology (new machine, tool that can get the job done more efficiently) Taxes/Subsidies  Firms view taxes as a cost – could be a fee like a license  Subsidy is a government payment to an individual, business or other group.

9. Changes in Supply Change in Supplier Expectations  Change in expectation of future price of a product Government Regulations  Tarif/excise tax; EPA Number of Sellers