Supply. NOTES 11/5 The amount of a product that would be offered for sale at all possible prices...
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Transcript of Supply. NOTES 11/5 The amount of a product that would be offered for sale at all possible prices...
Supply
UNIT 3: CHAPTER 5
NOTES 11/5
The amount of a product that would be offered for sale at all
possible prices
SUPPLY
Suppliers will normally offer more for sale at high prices and less at lower
prices.
LAW OF SUPPLY
Graph showing the various quantities
supplied at each and every price
that might prevail in the
market.
SUPPLY CURVE
Listing of the various
quantities of a particular
product supplied at all possible prices in the
market.
SUPPLY SCHEDULE
Supply curve that shows the quantities offered at various prices by
all firms that offer the product for sale in a given market.
MARKET SUPPLY
Amount that producers bring to market at any given price.
QUANTITY SUPPLIED
Government payment to an individual, business, or other
group to encourage or protect a certain type of economic activity.
SUBSIDY
Change in amount offered for sale in response to a change in price.
CHANGE IN QUANTITY SUPPLIED
Suppliers offer different amounts of products for sale at all possible prices in the
market.
CHANGE IN SUPPLY
Cost of inputsProductivityTechnologyTaxes and subsidiesExpectationsGovernment RegulationsNumber of Sellers
FACTORS THAT CAUSE A CHANGE IN SUPPLY PAGE
116
1. CREATE A GOOGLE DOC TITLE
ECON: SUPPLY FACTORS
2. CHOOSE 2 FACTORS
SUMMARIZE AND PROVIDE ONE EXAMPLE
PARTNERWORK
1. What are the factors of production? • Land, labor, capital
2. According to the Law of Supply, will suppliers offer more or less for sale at a higher price. Explain.
Write complete sentences and be ready to share.
More
11/6 DO NOW
Measure of the way in which quantity supplied responds to a change in
price.
AKA: Deals with how much does a change in price affect the supply.
SUPPLY ELASTICITY
• Firms can adjust to new prices quickly=
• Elastic• Firm takes longer to adjust to new
prices=• Inelastic
SUPPLY ELASTICITY
• If quantities are being purchased• Demand Elasticity
• If quantities are being sold:• Supply Elasticity
DEMAND ELASTICITY VS SUPPLY ELASTICITY
Complete question 3, 4, and 5,
PAGE 120
CHAPTER 5: SECTION 2
• Output: What firms produce• Input: What firms need to produce. Factors of
Production. • Raw materials: natural resources• Variable: Something that can change
EX: Labor: The number of worker a firm has can change from one day to the next
• Constant: Something that stays the same
TERMS TO KNOW
The relationship between the factors of production and the output of goods and services.
Short run a period of production that allows producers to change only the amount of the variable input called labor. Long run, a period of production long enough for producers to adjust the quantities of all their resources, including capital.
THEORY OF PRODUCTION
In the short run, output will change as one input is varied while the others are held constant.
LAW OF VARIABLE PROPORTIONS
Describes the relationship between changes in output to different amounts of a single input while other inputs are held constant.
PRODUCTION FUNCTION
Total product: Total output produced by the firm.
Extra output or change in total product caused by the addition of one
more unit of variable input.
MARGINAL PRODUCT
• Increasing returns, diminishing returns, and negative returns
• Based on the way marginal product changes as the variable input of labor is changed.
THREE STAGES OF PRODUCTION
1. Create a chart that summarizes the three stages of production (page 125). It must include:
a. Summary of each stage
b. A picture that includes a boss and worker
2. Page 120 Complete question 3, 4, and 5,
CLASSWORK