Download Supply PPT

Supply
What is supply?
Law of
Supply
•
Supply- various quantities of a good or
service that producers are willing to sell at
all possible market prices
•
The law of supply states that the higher
the price, the higher the profit for the
seller. Therefore, supply is the same (as it
relates to the direction of prices and
quantity supplied)
Supply Schedule and Curve
•
Supply schedule- relationship between price and the quantity
supplied.
•
A supply curve is a GRAPH that shows the amount of a
product that would be supplied at all possible prices in the
market.
Supply Curve
•
Unlike the demand curve,
the supply curve slopes
upward. This reflects the
fact that suppliers are
generally willing to offer
more goods and services at
a higher price and fewer at
a lower price.
Market Supply
• The total supply schedules for all businesses that provide the
same good or service is called the market supply.
• The price is the most important influence on the quantity of
any product supplied as reflected in the supply curve.
• When someone looks for a job, his or her economic product is
labor.
Review
• Describe the difference between the supply curve and the supply schedule.
• The schedule is in table form that shows various quantities of a good or
service that a business will offer
• Curve is a graph
• How does the incentive of greater profits affect the quantity supplied?
• Higher profits cause suppliers to produce more