what is supply?. 1-what is “supply’? the amount of a product offered for sale at all possible...
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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=nKvrbOq1OfI
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-Technology-
New 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 shiftFewer sellers: decrease in supply and leftward shift
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