Transcript 9-Name and explain the 7 factors that determine whether supplies

WHAT IS SUPPLY?
?
1-What is “supply’?
The amount of a product offered for sale at all possible
prices in the market.
2-Explain the “Law of Supply”
Suppliers will normally offer more [quantity] for sale at
high prices and less [quantity] at lower prices.
Suppliers have an incentive to produce more at higher prices in
hope of huge profits
3-How is the Law of Supply different from the Law of
Demand?
Supply
*From the producer’s P.O.V.
*The higher the price, the greater the quantity supplied
and vice versa.
*The supply curve slopes upward from left to right
3-How is the Law of Supply different from the Law of
Demand?
Demand
*From the consumer’s P.O.V.
*The lower the price, the greater the quantity demanded
and vice versa.
*The demand curve slopes downward from left to right
https://www.youtube.com/watch?v=nKvrbO
q1OfI
4-What is a supply schedule?
A listing of the various quantities supplied at all possible
prices
5-What is a supply curve?
A graph showing the various quantities supplied at all
possible prices in the market.
6-What is a “change in the quantity supplied”?
What does this change respond to?
The amount offered for sale in response to a change in
price.
7-What is a “change in supply”? How is it different
from a “change in the quantity supplied”?
Change in supply: something happens that causes suppliers to
offer products at different amounts for sale at all possible prices.
•Curve shifts left [decrease of product supplied] or right
[increase of product supplied]
Change in the quantity supplied: Just a movement up and
down the supply curve. Just affected by price. Price changes
quantity, but it does not affect supply
8-What happens when the supply curve shifts
to the:
*left: less is offered at all possible prices
*right: more is offered at all possible prices
9-Name and explain the 7 factors that determine
whether supplies increase or decrease.
1-Cost of Resources-an increase or decrease in the cost of land,
labor or capital will shift the curve left or right
2-Productivity-increases whenever more output is produced
using the same amount of input [cost of resources]
•Happy, motivated workers: increase in supply [rightward shift]
•Unhappy, unmotivated workers: decrease in supply [left]
9-Name and explain the 7 factors that determine
whether supplies increase or decrease.
3-TechnologyNew technology- shifts the curve rightward: lowers cost of
production, labor-saving.
Technological breakdown- shifts curve left because of increased
costs.
9-Name and explain the 7 factors that determine
whether supplies increase or decrease.
4-Taxes and Subsidies:
Taxes: higher taxes raise the cost of production and supply
decreases. Lower taxes: supply increases.
Subsidies: a government payment to an individual, business or
other group. They lower the cost of production and increase
supply.
Farmers are subsidized by the government
9-Name and explain the 7 factors that
determine whether supplies increase or
decrease.
5-Expectations:
About future prices going up, wait for the price increase and
increase supply then. Rightward Shift
Future prices going down: Slow down or stop producing.
Leftward Shift
6-Government Regulations
7-Number of Sellers
9-Name and explain the 7 factors that determine
whether supplies increase or decrease.
6-Government Regulations:
More regulations: Cause an increase in the cost of production
and a decrease in supply: leftward shift
Fewer regulations: Cause a decrease in the cost of production
and a increase in supply: leftward shift
7-Number of Sellers
More sellers: increase in supply and rightward shift
Fewer sellers: decrease in supply and leftward shift