Presentation is loading. Please wait.

Presentation is loading. Please wait.

Supply & Demand #9 Supply.

Similar presentations


Presentation on theme: "Supply & Demand #9 Supply."— Presentation transcript:

1 Supply & Demand #9 Supply

2 Review! List an inferior good. List a product that is price elastic.
Name 2 products that are complements. If you know a product is going on sale next week, how will demand shift this week? Give 1 reason demand might shift to the left?

3 Supply Producers want to maximize profit *Profit = Revenue ( ) – Cost

4 What would you rather produce?
You make lamps that sell for $150 and cost $100 to make. OR B. You make lamps that sell for $75 and cost $15 to make.

5 Supply What producers are willing & able to supply at a given price in a given time period

6 Your New Business For every empty soda can you recycle, you get 5 cents. How hard will you work to bring back the cans? What if you got 10 cents per can? What if you got 50 cents per can?

7 Law of Supply Quantity supplied is directly related to price
Higher price – increase supply Lower price – decrease supply More willing to higher prices More able to supply if marginal cost of making more is low

8 Graphing Supply Price of Pizza Quantity Supplied $5 20 $10 50 $15 80


Download ppt "Supply & Demand #9 Supply."

Similar presentations


Ads by Google