1. Understanding Supply

2. Outcome: Describe the behavior of sellers in a competitive market

3. Think-Pair-Share If you are selling a product and the price of the item increases, will you want to put more or less of the product on the market?

4. Supply Describes the behavior of sellers On a piece of paper write down how many hours a week you would work for  $7.00 an hour  $12.00 an hour  $20.00 an hour Total the hours Supply Schedule  Table showing the relationship between price and quantity supplied Supply Curve  Line of best fit of the relationship between price and quantity supplied

5. Think-Pair-Share Why would you work more as the wage increases? Opportunity Cost of not working. Wage is an incentive to suppliers to buy more of the items consumers want to buy In this example the buyer was the employer seeking workers

6. Change in Quantity Supplied v. Change in Supply Change in Quantity Supplied is a movement along the curve (line we graphed)  Only caused by a change in price Change in Supply is a movement of the entire curve (the line shifts)  Caused by a a change in one of the determinants of supply

7. Determinants of Supply Change in resource or input prices Change in technology Change in taxes or subsidies  Subsidy Changes in the prices of related goods Change in producer expectations Change in the number of suppliers

8. Producer Surplus Amount a seller is paid minus the sellers cost Area below the equilibrium price and above the supply curve