Lesson 1: What is Supply? The Theory of Production Cost, Revenue, and ...

Lesson 1: What is Supply?

Lesson 2: The Theory of

Production

Lesson 3: Cost, Revenue,

and Profit

Maximization

1

5 Supply

BIG IDEAS = Responsibility, Choices, Changes, and Relationships

Essential Questions:

¨C What is supply and what does the Law of Supply state?

¨C How can a change in supply occur?

¨C What is supply elasticity?

?

Remember you are responsible for answering one of these essential

questions at the end of this unit as an assessment.

Why it matters

Understand: Markets exist when buyers and sellers interact, and market

prices are set by the interaction of demand and supply. The profit motive

acts as an incentive for people to produce and sell goods and services.

2

? Learning goals for Supply:

¨C Explain the relationship of price and quantity

¨C Analyze the relationship in a supply schedule &

supply curve

¨C Explain why price can only be a change in the

quantity supplied

¨C Explain the 5 factors can change supply (or 7)

¨C Identify the factors that influence the size of a change

in the quantity supplied

3

Lesson #1 Vocabulary ¨C 10 words

? supply

? Law of

Supply

? supply

schedule

? supply curve

? market supply ? change in

curve

supply

? quantity

supplied

? change in the

quantity

supplied

? subsidy

? supply elasticity

What is Supply?

Understand that the higher the price of a

product, the more of it a producer will offer

for sale.

? Law of Supply: Producers will offer more

product at higher prices and less at lower

prices

? Supply is an amount of product offered for

sale at prevailing market prices.

? Direct relationship

5

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download