IB Economics - Introduction to Supply
... – The amount of goods and services that
producers are willing and able to supply at
any given price
– The Law of Supply
• The supply NORMALLY slopes upwards from
left to right
• Supply curves are normally curved and get
steeper as price rises, however we usually draw
them as straight lines to keep t ...
Elasticity of Supply
... • Price elasticity of supply measures the responsiveness of
the quantity supplied of a good to a change in its price in a
given time period
• Formula for calculating elasticity of supply (Pes)
– % change in quantity supplied divided by the % change in price
Section 1 “Understanding Supply” pgs. 101-107
... 2. As the level of cost for inputs rises the supply curve will shift to the
due to decreasing profits. On the other hand, if the price of outputs decrease,
the supply curve will shift to the
because profits will increase.
3. Input costs can drop as advancements in
Technology lowers co ...
... quantity sellers offer for sale
Price and quantity supplied move in the
◦ When price goes up the quantity supplied
A supply schedule is a tabular depiction of the
... The supply curves of individual suppliers can be summed to determine aggregate supply.
One can use the supply schedule to do this: for a given price, find the corresponding quantity
supplied for each individual supply schedule and then sum these quantities to provide a
group or aggregate supply. Plo ...
The elasticity of supply
... of a good/service elastic? That is, what
factors make it easy for suppliers to increase
supply of their product without a rise in cost
or time delay?
Need to think
from the business
Chapter 4 Supply
... Explain why supply is considered to be
“producer” controlled, describe the
relationship between supply and price
according to the law of supply, explain the
differences between elastic and inelastic
Topic 1.2.4 Supply student version
... Changes in income and supply
Shifting the supply curve
NOTE – if demand changes this will shift
demand but not supply. A change in
demand will cause a ____________ along
the supply curve not a shift.
So changes in income (e.g. increased
economic growth) or increased demand for
certain goods will NO ...
Supply - Unit 1
... produce those crops.
What does the average American get
from this deal?
Higher taxes and higher prices.
Supply - McEachern High School
... When the entire supply of a product increases or
decreases, the supply has SHIFTED.
What would cause a product’s supply to shift?
Prices of RESOURCES—if the price of lumber rises, the
supply of furniture will…
Shift to the LEFT.
Technology—when Henry Ford perfected the assembly
line, the automobile ...
... ResourcesExpectations (producers)Number of producersTaxes and TechnologySubsidies-
Supply - Cloudfront.net
... have a direct
relationship so that
increases, more of a
product is offered
supply - Pearland ISD
... S2 example would be the long run supply
curve of personal computers. Its supply curve
is downward sloping because as the volume of
PCs has expanded, computer firms have been
able to adopt more specialized equipment and
that will lower the cost of production.
Specialization increases the efficiency ...
5.1 The Supply Curve
... Total revenue is the total sales (dollars) received
from consumers for a certain time period.
Total cost includes the cost of all resources used
by a firm in producing goods or services.
Over time, total revenue must cover total cost for
the firm to survive.
... resources are those employed in the
production of the good in question.
If the price of some relevant resource increases
production cost increase Amount of production
decrease supply decreases supply curve
shifts to the left.
If the price of some relevant resource decreases
Law of Supply PowerPoint
... worker harder, work more hours, use more land to grow more tomatoes, hire
help, or even buy better equipment. But, what if the price for a basket of
tomatoes falls to $3.00 a basket? The farmer will now decide to decrease the
production of tomatoes because there is a lack of an incentive to grow so
Chapter 5 Review - Maximum Achievement Program
... b. It always rises from left to right.
c. It rises if supply is elastic.
d. It falls if supply decreases.
____ 14. Which of these events would indicate a movement along a supply curve for batteries?
a. A new law requires battery manufacturers to spend more money on environmentally
A household consists of one or more people who live in the same dwelling and also share at meals or living accommodation, and may consist of a single family or some other grouping of people. A single dwelling will be considered to contain multiple households if either meals or living space are not shared. The household is the basic unit of analysis in many social, microeconomic and government models, and is important to the fields of economics and inheritance. Household models include the family, varieties of blended families, share housing, group homes, boarding houses, houses in multiple occupation (UK), and a single room occupancy (US). In feudal times, the royal Household and medieval households of the wealthy would also have included servants and other retainers.