2.3 Supply

Supply

Open Ended

___________ is the amount of goods or services that a producer is willing to OFFER.

Producers

the BUSINESS is the producer. When we talk about SUPPLY, we must think like we are the BUSINESS. NOT the consumer. Shift your thinking= you are NOT THE BUYER anymore.

Multiple Choice

The Law of SUPPLY is

• When $$ goes $\uparrow$ , supply goes $\uparrow$

• When $$ goes $\uparrow$ supply goes $\downarrow$

Multiple Choice

The law of supply is a _____ relationship

• inverse

• direct

This is opposite of demand.

(Demand was inverse, SUPPLY is direct)

In other words, if the product sells for $5, the business will supply 60.

If the price drops to $5, the business will only supply 50

Multiple Choice

Which is the SUPPLY curve?

SUPPLY slopes upward, from left to right.

Multiple Choice

When we MOVE ALONG the curve, which graph is correct?