Supply - 9/15/11 Economics Supply

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
9/15/11 Economics Supply The  quantity supplied  of any good is the amount that sellers are willing and  able to sell. Price is income for supplier, wants a higher price Law of supply : the claim that the quantity supplied of a good rises when the  price of the good rises, other things equal. The Supply Schedule (see ppf) Supply schedule : A table that shows the relationship between the price of a  good and the quantity supplied. Example: Starbucks’ supply of lattes. As prices go up so do the quantity of the item, both go up Notice that Starbucks’ supply schedule obeys the Law of Supply. Positive relationship between quantity and price Market Supply versus Individual Supply The quantity supplied in the market is the sum of the quantities supplied by all  sellers at each price. Suppose Starbucks and Jitters are the only two sellers in this market.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/16/2011 for the course ECON 1011 taught by Professor Irenefoster during the Fall '11 term at GWU.

Page1 / 2

Supply - 9/15/11 Economics Supply

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online