1. The Law of Supply Supply  the amount Law of supply  tendency of suppliers to offer Quantity supplied  the amount a supplier is willing and As the price of a good rises, firms will produce If the price of a good falls, firms will produce

2. If a firm is already earning a profit by selling a good, then an If the price of a good rises, but cost of making it remains the same, –Producers would try to produce more of the good to Price goes up, you want to produce more and if the price goes down you want to produce less Higher Production

3. Market Entry Profit appeals to producers in the market Competition in the market is Rap music  the ability to make money “rapping” has caused in increase in the amount of rap artists

4. The Supply Schedule Supply schedule  a chart that lists A Supply schedule shows only the A rise or fall in the price of a good will cause the quantity supplied to When a factor other than the price affects output,

5. Supply Graph and Elasticity of Supply Supply curve  a graph of the quantity supplied of a good at different prices –Horizontal axis measures the –Supply curves always rise from Market supply curve  a graph of the quantity supplied of a good by –**Helps determine total supply of a good at Elasticity of supply  a measure of the way quantity supplied

6. Elastic supply  supply is –Example: more pizza being produced at a higher price –A small increase in price has a Inelastic supply  supply is –Example: painting by a deceased artist Key factor in determining elastic vs. inelastic supply Short run  supply is Long-run  supply is Elasticity of Supply

7. Short Run Elasticity Orange grove example  –If price goes up, planter could plant more trees, but he has –His supply is inelastic because –If price goes down, the planter will probably supply

8. Orange Grove Example  –Over time, you can plant more trees –If the price drops and stays low, over time, the grower could Supply becomes more elastic if the Long-Run Elasticity