Transcript Supply

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Students
Students
Students
supply
Students
supply
will describe the concept of supply
will analyze a supply curve
will discuss factors that affect
will explain what is meant by fixed
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Supply
◦ The willingness and ability to offer a given good
or service for sale
◦ The relationship between the price and quantity
supplied for a good or service
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Quantity Supplied – the amount of goods or
services sellers offer for sale at a given
price
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Law of Supply – there is a direct relationship
between the price of a good and the
quantity sellers offer for sale
Price and quantity supplied move in the
same direction
◦ When price goes up the quantity supplied
increases
◦ When price goes down the quantity supplied
decreases
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Supply schedule is a
table that lists the
quantity of a good or
service sellers offer for
sale at possible prices
Sellers are willing to
sell or supply more at
the higher price due to
the profit motive. As
the price of a good
rises, there is greater
profit
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The same information can also be illustrated as a supply
curve, in which the quantities supplied are placed on a graph
with a line connecting all of the points on the graph
This allows you to move along the line and find the quantity
supplied for a seller at possible selling prices
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Factors that will cause supply to move the
curve’s position in either direction – left or
right
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Cost of Production
◦ Input costs
 The price of what goes into producing a good or
service directly affects how much will be supplied
(land, labor, capital)
◦ Available technology
 Improved technology will make it easier and cheaper
to supply a product
 Loss of technology can reduce supply
◦ Government actions
 Excise taxes tend to reduce supply
 Subsidies tend to increase supply
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Number of sellers
Change in producer price expectation
Weather
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Change in quantity demanded results solely
from a change in price
◦ It is a movement between points along a
stationary supply curve
◦ This change assume that all other supply shifter
factors remain the same (no change in input
costs, no change in technology, no government
actions, etc)
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Change in supply
◦ An increase (rightward shift) or a decrease
(leftward shift) of the supply curve.
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Results from the supply shifters (previously
discussed
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No matter how strong the demand is,
production enough to meet the demand is
not possible
Completely vertical supply curve fixed at a
given quantity
Temporary fixed supply
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Fixed supply can also be permanent
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◦ Cause – no time to produce more
◦ no more can ever be produced
 songs written by Michael Jackson
 land in Manhattan
Supply is the __________ and __________ to
offer a good or service for sale.
A.
B.
C.
D.
initiative . . . desire
knowledge . . . opportunity
willingness . . . ability
strength . . . commitment
Supply is the __________ and __________ to
offer a good or service for sale.
A.
B.
C.
D.
initiative . . . desire
knowledge . . . opportunity
willingness . . . ability
strength . . . commitment
The law of __________ states that price and quantity
supplied move in the same direction.
A.
B.
C.
D.
Supply
Economics
Capitalism
Demand
The law of __________ states that price and quantity
supplied move in the same direction.
A.
B.
C.
D.
Supply
Economics
Capitalism
Demand
The prices of what goes into producing a good or
service are called __________ costs.
A.
B.
C.
D.
Input
Output
Outsource
Additional
The prices of what goes into producing a good or
service are called __________ costs.
A.
B.
C.
D.
Input
Output
Outsource
Additional
Improved __________ can make goods easier and
cheaper to supply.
A.
B.
C.
D.
Quality
Technology
Competition
Communication
Improved __________ can make goods easier and
cheaper to supply.
A.
B.
C.
D.
Quality
Technology
Competition
Communication
Excise taxes tend to __________ supply.
A.
B.
C.
D.
Stop
Decrease
Increase
Not change
Excise taxes tend to __________ supply.
A.
B.
C.
D.
Stop
Decrease
Increase
Not change
Government subsidies tend to __________ supply.
A.
B.
C.
D.
Stop
Decrease
Increase
Not change
Government subsidies tend to __________ supply.
A.
B.
C.
D.
Stop
Decrease
Increase
Not change
Each of the following may result from an excise tax
EXCEPT:
A.
B.
C.
D.
increase in cost of production
increase in consumer price
reduction of the supply
increase in the demand
Each of the following may result from an excise tax
EXCEPT:
A.
B.
C.
D.
increase in cost of production
increase in consumer price
reduction of the supply
increase in the demand
Weather conditions would be LEAST likely to affect
supply in
A.
B.
C.
D.
Farming
Fishing
Technology
Transportation
Weather conditions would be LEAST likely to affect
supply in
A.
B.
C.
D.
Farming
Fishing
Technology
Transportation
A fixed supply results in a supply line that
__________.
A.
B.
C.
D.
Is vertical
Is horizontal
Shifts to the left
Shifts to the right
A fixed supply results in a supply line that
__________.
A.
B.
C.
D.
Is vertical
Is horizontal
Shifts to the left
Shifts to the right