01.04 Supply
Sellers
Sellers also make choices that affect the supply o Supply: the total amount of a good or service available for purchase When demand is high, price goes up
Supply Schedule
Supply schedule: a chart that lists how much suppliers will produce at various prices Supply (S) o Whole curve The supply for goods and services at all prices Quantity supplied (QS) o A specific point o Show how much it will be produced at a specific price CHANGE IN PRICE ONLY CHANGES QS o High price, low quantity Curve shift to the left, decrease in supply To the right, increase in supply
Demand vs Supply
In graphing: Can graph together O Quantity (Q) is x axis; Price (P) is y axis o Origin point is always ft When demand slope is down, supply slopes upward Change in price will affect QD and QS
ROTTEN
Reasons for shift in supply R: Resource: cost and availability o Availability of resources necessary for producing the product shift the supply curve O: Other goods o When suppliers switch for other products easier to produce and becomes more profitable T: Taxes, subsidies, and gov. regulation Subsidy: a gov. payment to an individual or business to encourage a certain activity Lowers cost and shifts to the right
o Or a gov. tax or regulation Increases cost of production T: Technology (productivity) o New technology makes production faster and cost-effective N: Number of firms in the industry o If it has more places where supply is produced, supply will shift to the righ