1. Supply

2. Bell Ringer
What does it look like when demand is perfectly elastic and inelastic?
What does that mean in terms of demand?

3. Supply and the Law of Supply
Supply: quantity of goods and services that producers are willing and able to offer at various price possibilities during a given period.
Law of Supply: states that producers supply more goods and services when they can sell them at a higher prices, and fewer goods and services when they must sell them at lower prices.

4. Profit Motive Profit Motive: Desire to make money.
Profit: Amount of money left after producers have paid all their costs.

5. Supply Curve and Schedule

6. Elastic Supply
Elastic Supply: Occurs when a small change in price causes a major change in the quantity supplied.
Products with Elastic Supply usually can be made:
Quickly
Inexpensively
Using few readily available resources.

7. Elastic and Inelastic Supply Curves

8. Inelastic Supply
Inelastic Supply: Exists when a change in a good’s price has little impact on the quantity supplied.
A product that has inelastic supply usually has a production that:
Requires a great deal of time
Requires a great deal of Money
Requires a great deal of resources that are not readily available.

9. Homework
Read Chapter 4, Section 1
Do questions: 1, 2, 3