Download 5-1 What is Supply?

Chapter 5 – Supply
5-1 What is Supply?
CA Standards:
12.1 Students understand common economic terms and concepts and
economic reasoning
12.2.2 Discuss the effects of changes in supply and/or demand on the
relative scarcity, price, and quantity of particular products.
Objectives:
• Understand the meaning and concept of supply.
• Explain the difference between the supply schedule and the supply curve.
• Explain what is meant by a change in quantity supplied.
• Specify the reasons for a change in supply.
Write definition of key terms found on
page 111
Use glossary in textbook
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Theory of Production
Short Run
Long Run
Law of Variable Proportions
Production Function
Raw Materials
Total Product
Marginal Product
Stages of Production
Diminishing Returns
Read pages 111 - 115
Economics: Principles & Practices
Prepare for Open notebook Quiz
Key
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Terms page 104
Supply
Supply Schedule
Supply Curve
Law of Supply
Quantity Supplied
Change in Quantity Supplied
Change in Supply
Subsidy
Supply Elasticity
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When economists consider demand, they are
interested in people’s willingness and ability to
purchase a product over a wide range of prices. In
the case of supply, economists are concerned with
people’s ability and willingness to offer products
over a wide range of prices.
1. What must be present for people to supply a
product?
a.
b.
Ability to supply a product
Willingness to supply a product
2. What is the purpose of a supply schedule?
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- to show the quantities offered at each and every
possible price.
3. How is a supply curve similar to and
different from a supply schedule?
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Similar to: Both tell the quantities offered
for sale at each and every price.
Different from: Schedule presents
information in a table while the curve shows
it in a graph.
4. What does the Law of Supply state?
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The quantity supplied varies directly with its
price.
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5. How is a change in quantity supplied
shown on the supply curve?
Change in quantity supplied is shown on the supply
curve as movement along the supply curve.
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6. How is a change to supply shown on the
demand curve?
The entire supply curve shifts.
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7. What are seven factors that can cause a
change in supply?
a. Cost of inputs
b. Productivity
c. Technology
d. Number of sellers
e. Taxes and subsidies
f. Expectations
g. Government regulation
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8. What does supply elasticity tell?
Supply elasticity tells the way in which changes in
the quantity supplied are affected by changes in
price.
Be prepared for open
notebook quiz