Supply Chapter 5 Section 1 The Law of

+ Supply Chapter 5 Section 1

+ The Law of Supply n Supply- The willingness and ability of producers to offer goods or services n Law of Supply: n Producers willing to sell more of a product at a higher than at a lower price

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

+ Supply Schedules Supply Schedule n Shows amount of product an individual is willing and able to offer at each price n 2 Columns n Left-Prices n Right-Quantity Supplied Market Supply Schedules n Market Supply Schedule n Shows the amount of a product all producers are willing and able to offer each price n Much Larger Scale

+ Supply Curves Supply Curve n Market Supply Curve n Shows data from supply schedule in graph n Graphic representation of law of demand n Based on all economic factors staying the same Market Supply Curve n n Shows data from market supply schedule Follows law of supply

+ 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