+ Supply Chapter 5 Section 1

+ The Law of Supply Supply- The willingness and ability of producers to offer goods or services Law of Supply: Producers willing to sell more of a product at a higher than at a lower price

+ Law of Supply Example Smith sells tomatoes at a farmers’ market Willing to offer 24lbs at standard price of $1/lb Willing to offer 50lbs at $2/lb Willing to offer 10lbs at 50cents per lbs Not willing to supply any tomatoes below 50 cents

+ Supply Schedules Supply Schedule Shows amount of product an individual is willing and able to offer at each price 2 Columns Left-Prices Right-Quantity Supplied Market Supply Schedule Shows the amount of a product all producers are willing and able to offer each price Much Larger Scale Supply ScheduleMarket Supply Schedules

+ Supply Curves Supply Curve Shows data from supply schedule in graph Graphic representation of law of demand Based on all economic factors staying the same Market Supply Curve Shows data from market supply schedule Follows law of supply Supply CurveMarket Supply Curve

+ VOCABULARY SupplyThe willingness and ability of producers to offer goods or services Law of SupplyProducers willing to sell more of a product at a higher than at a lower price Supply ScheduleShows amount of product an individual is willing and able to offer at each price Market Supply ScheduleShows the amount of a product all producers are willing and able to offer each price Supply CurveShows data from supply schedule in graph Market Supply CurveShows data from market supply schedule