1. Supply!

2. Supply
Supply: A seller’s willingness and ability to sell

3. Supply
Law of Supply:
When the price of a good rises, suppliers want to sell more of it
When the price of a good falls, suppliers want to sell less of it

4. Drawing Supply
We can draw a business’ supply at different prices on a graph, called a supply curve
Shows how much quantity you would supply at a certain price

5. Why does Supply go up? Remember the Law of Supply:
The higher the price, the _________ a seller will supply
The lower the price, the _________ a seller will supply

6. How does Supply Change Costs of factors of production
When price of resources goes up, supply goes down because it costs suppliers more to produce

7. How does Supply Change Technology
When technology increases, supply goes up because suppliers can now produce more

8. How does Supply Change Number of Sellers
The more sellers, the higher supply because more people are selling stuff

9. How does Supply Change Expectations of Future Price
If sellers think the price will rise in the future, supply now drops because they will hold off selling until later (they want a higher price b/c they make more money)

10. How does Supply Change Taxes
When taxes rise, supply goes down because there are extra costs

11. How does Supply Change Subsidies
Opposite of tax (they give business money); causes supply to go up because it lets businesses produce cheaper

12. How does Supply Change Supply Shocks (natural disasters)
When a supply shock happens, supply goes down

13. What does supply change look like?
When supply decreases, it shifts left
When supply increases, it shifts right