Mohr & Fourie: Chapter / Hoofstuk 7

ECON111_2011

Outcomes Uitkomstes

Discuss & apply ... Determinants of SUPPLY

Illustrate SUPPLY in ... Words Symbols Graphs Equations

Differentiate between ... SUPPLY vs. QUANTITY

supplied Individual SUPPLY vs. Market

SUPPLY Movement ALONG/ON curve

vs. Movement OF THE curve

Bespreek & pas toe... Determinante van AANBOD

Illustreer AANBOD in Woorde Syfers Grafieke Vergelykings

Onderskei tussen ... AANBOD vs. HOEVEELHEID

aangebied Individuele AANBOD vs. Mark

AANBOD Beweging LANGS/OP kromme

vs. Beweging VAN DIE kromme

Introduction: Supply Inleiding: Aanbod

What is SUPPLY? Wat is AANBOD?

Definition ... (7.3)

PLAN to sell...

Certain period...

Different prices...

Quantities of a good or service that producers plan to sell at each possible price during a certain period.

Definisie ... (7.3)

BEPLAN om te verkoop ...

Bepaalde tydperk ...

Verskillende pryse ...

Hoeveelhede van ’n produk of diens wat firmas beplan om gedurende ’n bepaalde tydperk teen verskillende moontlike pryse te verkoop.

SUPPLY AANBOD

Positive slope ... Individual supply

Determinants Market supply

Determinants

Positiewe helling ... Individuele aanbod

Determinante Mark aanbod

Determinante

P Qs More / meer More / meer

What does SUPPLY look like? Hoe lyk AANBOD? Schedule / Table 7-4

Remember the EquationY = c + mX

ECONOMICSPs = a + bQs

REWRITE:

Qs = Ps - a

b

Skedule / Tabel 7-4

Onthou die VergelykingY = c + mX

ECONOMICSPs = a + bQs

REWRITE:

Qs = Ps - a

b

Price / kg Qs

1 500

2 1 000

3 1 500

4 2 000

5 2 500

Prys / kg Qs

1 500

2 1 000

3 1 500

4 2 000

5 2 500

TIP: Y = a + bX TIP: Y = a + bX

Y is replaced by P X is replaced by Q

Ps = a + bQs

Solve (b) first Slope = b in Y over in X THUS P / Q

Then solve (a) Replace P, Q, b (P, Q from table) P = a +bQ Solve for a: a = P - bQ

Y word met P vervang X word met Q vervang

Ps = a + bQs

Begin met (b) Helling = b in Y oor in X (Dus P/ Q)

Bereken dan (a) Vervang P, Q, b (P, Q vanuit tabel) In P = a + bQ Los op vir (a) = P - bQ

CLASS WORK KLASWERK

Qs 0 1 2 3 4 5

P 1 3 5 7 9 11

By making use of the table, determine the supply equation.

Lei die aanbod vergelyking af deur gebruik te maak van die bostaande tabel.

CLASS WORK KLASWERK

STEP 1: Ps = a + bQs

STEP 2: b (Slope / Helling)= P/ Q= 3–1

1-0= 2

STEP 3: a (Intercept/Afsnit)= 1

THUS: Ps = a + bQs

Ps = 1 + 2Qs

STEP 0: Y = c + mX

Qs 0 1 2 3 4 5

P 1 3 5 7 9 11

CLASS WORK KLASWERK

STEP 4: REWRITE FOR Qd

Ps = 1 + 2Qs

-2Qs = 1 – Ps

Qs = 1 – Ps

-2Qs = -0.5 + 0.5Ps

Qs 0 1 2 3 4 5

P 1 3 5 7 9 11

SUPPLY AANBOD

With Supply two things can happen...

Movement ALONG/ON the curve

Movement OF the curve

Met aanbod kan twee goed gebeur...

Beweging LANGS/OP die kromme

Beweging VAN die kromme

MOVEMENT

ON

BEWEGING

OP

WHEN? WANNEER?

PRICE PRYS

SUPPLY AANBOD

Qs

QUANTITY supplied HOEVEELHEID aangebied

Change in QUANTITY supplied (Qs)

SUPPLY (SS) unchanged 1 curve NB. caused by PRICE

Verandering in HOEVEELHEID aangebied (Qs)

AANBOD (SS) bly staan 1 kromme NB. a.g.v. PRYS

Qs

Movement ON curve Beweging OP kromme

ONE SUPPLY curve

Change in QUANTITY supplied

(Qs)

NOT a change in SUPPLY (S)

EEN AANBOD kromme

Verandering in HOEVEELHEID

aangebied (Qs)

NIE verandering in AANBOD nie

(S)

Qs

MOVEMENT

OF

BEWEGING

VAN

WHEN? WANNEER?

PPPINT PPPINT

SUPPLY AANBOD

Change in SUPPLY (S) SUPPLY (SS) shifts/moves 2 curves

Verandering in AANBOD (S)

AANBOD (SS) skuif 2 krommes

SIF SUPPLY YOU WILL SHIFT THE SUPPLY CURVE TO THE RIGHT

IF SUPPLY YOU WILL SHIFT THE SUPPLY CURVE TO THE LEFT

AS AANBOD SKUIF JY DIE AANBOD KROMME NA REGS

AS AANBOD SKUIF JY DIE AANBOD KROMME NA LINKS

SUPPLY AANBOD

Regs Right

Links Left

Determinants Determinante

Individual SUPPLY Individuele AANBOD

PRICE OF

JOINTPRYS VAN

JOINT

P

Q

S1S2

QS

PRICE OF ALTERNATIVE PRYS VAN ALTERNATIEF

P

Q

S1

S2

QS

PRICEe PRYSe

P Jan. 2012

P

Q

S1

S2

QS

INPUTS INSETTE

Price of inputs

P

Q

S1S2

QS

P

OTHER ANDER

P

Q

S1S2

QS

P

TECNOLOGY TEGNOLOGIE

P

Q

S1

S2

QS

P

Beter tegnologie wat help met die vervaardiging en kostebesparing van IPODS.

What will happen??

Class Work Klaswerk

Government imposes minimum wage legislation on agricultural labour, which results in the average wage of maize farm workers increasing by 50%.

Illustrate the impact of this policy on the supply of maize

Die regering stel minimum loon wetgewing in op die arbeid in landbou, wat tot gevolg het dat die gemiddelde loon verdien deur mielieplaas werkers met 50% styg.

Illustreer die impak van hierdie beleid op die aanbod van mielies

P1

P2

Q1Q2

PRYSPRICE

HoeveelheidQuantity

S1

S2

Summary: SUPPLY Opsomming: AANBOD

Table 7-5 Tabel 7-5

!

HOMEWORK HUISWERK

Consider the market of maize in South Africa. Using standard notions of supply what effect will the following changes have, ceteris paribus. Make use of a graph in each of your answers.

Oorweeg die mark vir mielies in Suid-Afrika in ag. Deur gebruik te maak van die standaard neigings van aanbod, skets die effek wat die veranderinge sal aanbring, ceteris paribus. Maak gebruik van ’n grafiek in elk van u antwoorde.

Question 1-2 Vraag 1-2

1. A severe drought hits the maize-producing areas of South Africa

2. Farmers typically have the choice to produce either maize or sunflowers (i.e. maize and sunflowers are substitutes in production). For unknown reasons the price of sunflowers increase sharply.

1. ʼn Groot droogte tref die areas in Suid-Afrika wat mielies produseer.

2. Boere het gewoonlik ʼn keuse om of mielies of sonneblomme te produseer (mielies en sonneblomme is substitute in produksie). Vir onbekende redes styg die prys van sonneblomme skerp.