1. Ch. 5.1 fill in Notes: What is Supply?

2. I. Supply is based on…..
Supply is defined as….
A. Supply Schedule =
B. Supply Curve =
C. Change in Quantity Supplied =
D. Change in Supply =
1. Reasons why supply increases :
a. Cost of input = cheaper to make b. c. d. e. f. g.

3. II. Elasticity of Supply > sellers quantity
response to a price change
A. 2 Step Formula
Step 1: New Q – Orig Q New P – Orig P
Orig Q Orig. P
Step 2:
1. Elastic Supply if Q > P
(suppliers are very responsive to price
changes)
2. Inelastic Supply if Q < P (suppliers are
not very responsive to price
3. Unit Elastic if Q = P (suppliers are
evenly responsive to price changes)

4. B. Example…. Copy graph and do