supply = the amount of goods generally available

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Unit 3: Supply and Demand

Chapter 5: Supply

Introduction

• Quantity Supplied– what the producers are able to produce at a

certain price– what the producers are willing to produce at a

certain price

The Supply Schedule• Types– individual supply schedule• what a single business is willing to supply at different prices

– market supply schedule• what ALL of the businesses are willing to supply at different

prices

The Supply Curve

• axes– vertical• always is Price• always rises from 0 to highest price

– horizontal• always is Quantity• always has zero at left and highest price at right

– slope• shows the Law of Supply• rises from left to right

Elasticity

• how time effects reactions– inelastic supply in SHORT TERM, but can react in

LONG TERM• agriculture

– must plant more– must wait for plants to begin to produce

• big businesses (like car manufacturing)– must get new technology and training– must wait for new factories to be built

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