logging in or signing up Supply Notes HB, DELETE ME Daniel.Hurlbert Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 8 Category: Entertainment License: All Rights Reserved Like it (0) Dislike it (0) Added: October 25, 2011 This Presentation is Public Favorites: 0 Presentation Description From MBT, Test Upload Comments Posting comment... Premium member Presentation Transcript SUPPLY NOTES: SUPPLY NOTESLaw of Supply: Law of Supply The law of supply states that as the price of a good rises, the amount people are willing to produce rises. When the price of a good lowers, the amount people are willing to produce decreases.Quantity Supplied vs Supply: Quantity Supplied vs Supply Quantity supplied is the amount producers are willing to supply at a specific price. Supply is the amount producers are willing to produce at all prices in the market.Quantity Supplied: Quantity Supplied Price Quantity suppliedSupply: Supply Price Quantity suppliedElasticity of Supply: Elasticity of Supply Supply is elastic for goods that are: Easy to produce Quick to produce Of easy to find materials Made from existing technologyElasticity of supply: Elasticity of supply Elastic Supply can react to rising demand quickly and easily Inelastic supply cannot react quickly or easily to changing demand. Shortages or surpluses are common.Examples of Elastic Supply: Examples of Elastic Supply Sports memorabilia Holiday decorations School suppliesInelastic Supply: Inelastic Supply Supply is inelastic for goods that are: hard to produce Expensive to produce Time consuming to produce Of difficult to find materials Made from technology that doesn ’ t existExamples of inelastic supply: Examples of inelastic supply Cars Houses New products Space shuttlesDeterminants of Supply: Determinants of Supply Factors that cause a brand new supply curve to be created where people supply more or less at the same prices as before.Determinants of Supply: Determinants of Supply Change in number of producers Change in technology Change in government rules (taxes, subsidies, quotas) Change in expectationsExamples…: Examples… If there are more producers in the market, more is supplied at each price. Changes in technology generally make it easier and quicker to produce products, so more is produced at each price.More examples…: More examples… Government subsidies encourage producers to produce, so more is produced at each price. Taxes make it more expensive, so less is produced at each price. Quotas reduce the overall supplyLast examples: Last examples If producers expect the prices to be higher in the future, they will put off production now. If they expect prices to be lower in the future, they may produce now in order to reap the profits. You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
Supply Notes HB, DELETE ME Daniel.Hurlbert Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 8 Category: Entertainment License: All Rights Reserved Like it (0) Dislike it (0) Added: October 25, 2011 This Presentation is Public Favorites: 0 Presentation Description From MBT, Test Upload Comments Posting comment... Premium member Presentation Transcript SUPPLY NOTES: SUPPLY NOTESLaw of Supply: Law of Supply The law of supply states that as the price of a good rises, the amount people are willing to produce rises. When the price of a good lowers, the amount people are willing to produce decreases.Quantity Supplied vs Supply: Quantity Supplied vs Supply Quantity supplied is the amount producers are willing to supply at a specific price. Supply is the amount producers are willing to produce at all prices in the market.Quantity Supplied: Quantity Supplied Price Quantity suppliedSupply: Supply Price Quantity suppliedElasticity of Supply: Elasticity of Supply Supply is elastic for goods that are: Easy to produce Quick to produce Of easy to find materials Made from existing technologyElasticity of supply: Elasticity of supply Elastic Supply can react to rising demand quickly and easily Inelastic supply cannot react quickly or easily to changing demand. Shortages or surpluses are common.Examples of Elastic Supply: Examples of Elastic Supply Sports memorabilia Holiday decorations School suppliesInelastic Supply: Inelastic Supply Supply is inelastic for goods that are: hard to produce Expensive to produce Time consuming to produce Of difficult to find materials Made from technology that doesn ’ t existExamples of inelastic supply: Examples of inelastic supply Cars Houses New products Space shuttlesDeterminants of Supply: Determinants of Supply Factors that cause a brand new supply curve to be created where people supply more or less at the same prices as before.Determinants of Supply: Determinants of Supply Change in number of producers Change in technology Change in government rules (taxes, subsidies, quotas) Change in expectationsExamples…: Examples… If there are more producers in the market, more is supplied at each price. Changes in technology generally make it easier and quicker to produce products, so more is produced at each price.More examples…: More examples… Government subsidies encourage producers to produce, so more is produced at each price. Taxes make it more expensive, so less is produced at each price. Quotas reduce the overall supplyLast examples: Last examples If producers expect the prices to be higher in the future, they will put off production now. If they expect prices to be lower in the future, they may produce now in order to reap the profits.