TOPICS
- Definition of
supply
- Changes in Supply vs. Changes in Quantity Supplied
- Non-price determinants of supply and how they affect
the supply curve
OUTCOMES
define supply (note: it
has a DIFFERENT DEFINITION in economics)
be able to correctly draw and
label a supply graph
if the price of pizza goes up why
does the supply not change?
why do economists employ the
ceteris paribus assumption when creating a supply
curve?
what is the law of
supply?
why is the supply curve upward
sloping (two explanations)
list the non-price determinants of
supply (Pe, Pog, Pres, Tech, Taxes, Nprod) or
(P,P,P,T,T,N) and understand how they affect the supply
schedule and curve. This is VERY IMPORTANT. BE
ABLE TO DO THIS! See the 3a/3b/3c yellow
pages.
explain the difference between the
a "change in the quantity supplied" and a "change in
supply"
what is an increase in supply and
a decrease in supply and show how they affect the supply
schedule and the supply curve
what is "market
supply"?
Read the following and answer
these questions:
- Which determinant
has changed?
- Will it affect S or D of gasoline?
- Will the S or D of gasoline increase or decrease?
Shift to the right or to the left?
"According to the
Lundberg Survey, the average price for regular
gasoline dropped 3.99 cents over the three weeks up
to July 11 to $3.6699 per gallon. . . . Lundberg
explained that the average gasoline price continues
to decrease because refiners, enjoying the lower
crude oil prices in the market, are passing down
the savings to the consumers. "
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