1. Homework: Ch 5 Review due next week FrontPage: NNIGN 21 Inane Baby Products For Questionable Parents

2. SUPP LY Chapter 5, Section 1

3. Supply Supply refers to the willingness and ability of producers to offer goods and services for sale.

4. The Law of Supply States that producers are willing to sell more of a good or service at a higher price than they are at a lower price. –When prices decrease, quantity supplied decreases. P  Q S  –When prices increase, quantity supplied increases. P  Q S 

5. Supply Schedules A supply schedule is a table that shows how much of a good or service an individual producer is willing and able to offer for sale at each price in a market. A market supply schedule is a table that shows how much of a good or service all producers in a market are willing and able to offer for sale at each price.

6. Smith Family’s Tomato Supply Schedule Price per Pound ($) Quantity Supplied (in lbs.) 2.0050 1.7540 1.5034 1.2530 1.0024 0.7520 0.5010

7. Tomato Market Supply Schedule Price per Pound ($) Quantity Supplied (in lbs.) 2.00350 1.75300 1.50250 1.25200 1.00150 0.75100 0.5050

8. Supply Curves A supply curve is a graph that shows how much of a good or service an individual producer is willing and able to offer for sale at each price in a market. A market supply curve is a graph that shows how much of a good or service all producers in a market are willing and able to offer for sale at each price.

9. Smith Family’s Tomato Supply Curve 01020304050 Price per pound ($).50.75 1.00.25 1.25 1.50 1.75 2.00 Quantity supplied of tomatoes (lbs.)

10. Tomato Market Supply Curve 050100150200250 Price per pound ($).50.75 1.00.25 1.25 1.50 1.75 2.00 Quantity supplied of tomatoes (lbs.) 300350

11. Practice

12. Business Model Part I