1. SUPPLY
Chapter 5

2. Supply
The willingness and ability of sellers to produce and offer to sell different quantities of a good at different prices during a specific time period

3. Law of Supply
As the price of a good increases, the quantity supplied of the good increases, and as the price of a good decreases, the quantity supplied of the good decreases.
Quantity supplied refers to the number of units of a good produced and offered for sale at a specific price.
This is a Direct Relationship. The two factors move in the same direction

4. The Law of Supply in numbers and pictures

5. Vertical Supply Curves

6. Factors that cause a shift of the supply curve
Resource Prices
Technology
Taxes
Subsidies
Quotas
Number of Sellers
Future Price
Weather (in some cases)

7. Change in Supply vs. Change in Quantity Supplied
Quantity supplied refers to the number of units of a good produced and offered at a specific price
Supply is the willingness and ability of sellers to produce and offer to sell different quantities of a good at different prices during a specific time period

8. Elasticity of Supply
Elasticity of supply equals the percentage change in quantity supplied, divided by the percentage change in price.
Elastic supply exists when the percentage change in quantity supplied is greater than the percentage change in price
Inelastic supply exists when the percentage change in quantity supplied is less than the percentage change in price.
Unit-elastic exists when the percentage change in quantity supplied is equal tothe percentage change in price.