Changes in Supply

Bell Ringer:

1.What is the difference between supply and quantity supplied?

2. What does the law of Supply State?

3. What do supply schedules and supply curves illustrate?

4. What is supply elasticity?

Determinants of Supply

• Prices of resources• Government Tools• Technology• Competition• Price of related goods• Producer expectations

All impact the supply curve, shifting it either left or right.

Shift in Supply… Increase

Shift in Supply… Decrease?

Cost of Production

In pairs define the following: Put in your notes, I will check prior to dismissal.fixed costsdepreciationoverheadvariable coststotal costsMarginal cost and how to calculate.

In Pairs…

• Work together to define the determinants of supply, put them in your notes.

• Be ready for a quiz on information presented so far.

• Homework: Study, and Chapter 4, Section 2: Questions 1,2,3 Chapter 4, Section 3: Question:1 reviews