+

Supply Chapter 5Section 1

+The Law of Supply

Supply- The willingness and ability of producers to offer goods or services

Law of Supply: Producers willing to sell more of a product at a higher than

at a lower price

+Law of Supply Example

Smith sells tomatoes at a farmers’ market Willing to offer 24lbs at standard price of $1/lb Willing to offer 50lbs at $2/lb Willing to offer 10lbs at 50cents per lbs Not willing to supply any tomatoes below 50 cents

+Supply Schedules

Supply Schedule Shows amount of product

an individual is willing and able to offer at each price

2 Columns Left-Prices Right-Quantity Supplied

Market Supply Schedule Shows the amount of a

product all producers are willing and able to offer each price

Much Larger Scale

Supply Schedule Market Supply Schedules

+Supply Curves

Supply Curve Shows data from supply

schedule in graph

Graphic representation of law of demand

Based on all economic factors staying the same

Market Supply Curve Shows data from market

supply schedule

Follows law of supply

Supply Curve Market Supply Curve

+ VOCABULARY

Supply The willingness and ability of producers to offer goods or services

Law of Supply Producers willing to sell more of a product at a higher than at a lower price

Supply Schedule Shows amount of product an individual is willing and able to offer at each price

Market Supply Schedule Shows the amount of a product all producers are willing and able to offer each price

Supply Curve Shows data from supply schedule in graph

Market Supply Curve Shows data from market supply schedule