1. Chapter 21.3

2. Demand Review  Log on to www.socrative.com and join room 917563www.socrative.com  Take quiz.  You may use pp. 70-71 to help you on the quiz.  Put your Chrome book or electronic device away when done.

3. Supply  Supply is the amount producers are willing to sell at all prices.  Producers control supply-side of our economy.  What is the difference between a supply schedule & a supply curve?  Which way does the supply curve always slope? Why?  The Law of Supply says as prices increase the quantity supplied increases.  Do Supply Graphing Exercises, p. 73.

4. Supply  How does profit motive relate to the law of supply?  Higher prices mean more profit  Market supply is the amount of a product that all producers are willing to sell at all prices.  Factors business consider include costs, competition, and consumer demand when businesses set prices.

5. Factors that change Supply  Change in cost of resources: Cost of sugar (ex)  Change in productivity: Labor slowdowns (ex)  Change in technology: Check out scanners (ex)  Change in government policies  Taxes  Minimum wage  Subsidies  Change in expectations: Hurricane season (ex)  Change in the number of suppliers or competition  Border Station vs. Southland  Food Lion

6. Elasticity of Supply  Elastic supply means there is a great difference between quantity supplied and changes in price.  Lots of competition, substitutes causes elasticity (Gas stations in Moyock, ex)  Inelastic supply means quantity supplied varies little with changes in prices.  Usually lack of competition or substitutes cases inelasticity. (Food Lion, ex)

7. Assignment  Read chapter 21.4 and complete the setting prices questions for p. 72.  Due tomorrow!