It shows the demand for a product is equal to the supply of the product.
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15
Supply ______________ is a measure of the way in which quantity supplied responds to a ____________ in price.
elasticity / change
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25
How do taxes, subsidies and the number of sellers / suppliers affect supply?
If taxes go down, supply increases. Subsidies encourage producers to remain in the market. The larger the No of suppliers, the greater the market supply.
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heart
Other team wins 25 points!
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seesaw
Swap points!
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rocket
Go to first place!
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banana
Go to last place!
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thief
Give points!
5
10
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25
gift
Win 15 points!
Okay!
fairy
Take points!
5
10
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25
banana
Go to last place!
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20
Why do you think producers supply more at a higher price?
Because selling a higher quantity at a higer price increases revenue (income/profit)
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20
Supply is defined as the amount of a ______________ that would be offered for sale at all possible ______________ that could prevail in the market.
Product / prices
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20
Why does the supply curve illustrate a positive relationship between the price and quantity supplied?
Because the higher the price, the higher the quantity supplied.
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20
Explain this individual supply curve
At a price of $0.50, producers will offer two slices of pizza for sale. At a price of $1, producers will offer 5 slices of pizza, etc
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25
Look at the schedule. Which column shows the quantity supplied and which one the quantity demanded? Why?
The column in the middle represents the quantity supplied and the third column shows the quantity demanded because of what the laws of demand and supply state.
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20
Does this graph show elastic or inelastic supply? Why?
Elastic supply because the change in price causes a relatively larger change in the quantity supplied.
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20
Why does the demand curve illustrate a negative relationship between the price and quantity demanded?
Because the higher the price of a good, the lower the quantity demanded.
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25
Which curve illustrates demand and which one illustrates supply? How do you know?
The blue curve illustrates supply because it is upward sloping as more will be offered at higher prices. The red curve illustrates demand as ...
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15
When does excess demand occur?
When the market demand for a product is greater than its market supply, thus causing its market price to rise.
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15
How does a change in the cost of production / inputs affect supply?
If the price of inputs drops, producers are willing to produce more of a product. If labor or other costs rise, producers will produce less.
