Law of Supply Bellringer Chapter 5 Lesson 1 What is Supply? Be - - PowerPoint PPT Presentation

Lesson 1: The Law of Supply

Chapter 5 Supply

Bellringer

Chapter 5 Lesson 1 What is Supply?

Be Bell llrin inger

• According to the Law of Supply, is

the relationship between price and quantity supplied direct or indirect?

• There is a direct relationship

between price and quantity demanded.

• Why do you think producers supply

greater quantities of a good or a service when prices rise?

• The hope for high profits

makes suppliers willing to

• ffer higher quantities at

higher prices.

Supply Schedule and Curve

Chapter 5 Lesson 1 What is Supply?

In Individual Supply Curve

Plot the price and quantity for individual supply graph.

In Individual Supply Curve

The graph shows a change in quantity supplied

In Individual and Market Curve

Chapter 5 Lesson 1 What is Supply?

In Individual and Market Supply Curves

Change in Supply

Chapter 5 Lesson 1 What is Supply?

5-1 Guided Reading Notes

Chapter 5 Lesson 1 What is Supply?

5-1: : What is Supply?

• A. An Introduction to Supply
• Main Idea: Supply is the amount
• f a produce available for sale at

all possible prices. Many factors affect product supply.

• 1. more; less
• 2. quantities; prices
• 3. product; all
• 4. price

5-1: : What is Supply?

• B. Change in Supply
• Main Idea: Various factors cause

the supply of a product to change.

• 1. resources; technology
• 2. workers; productivity
• 3. taxes; cost
• 4. subsidy; supply
• 5. regulations; safety

5-1: : What is Supply?

• C. Elasticity of Supply
• Main Idea: Supply elasticity

refers to how much the amount

• f a product supply responds to

changes in the price of that product.

• 1. measure; price
• 2. elastic
• 3. inelastic
• 4. unit; proportional
• 5. elastic; quickly
• 6. limited; inelastic

5-1: : Three Foldables

Chapter 5 Lesson 1 What is Supply?

UNDERSTANDING SUPPLY

CHANGES IN IN SUPPLY

SUPPLY ELASTICITY