{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

lectur15

# lectur15 - SupplyLecture 1 Supplyschedule anditsownprice...

This preview shows pages 1–15. Sign up to view the full content.

1 Supply Lecture Supply Lecture

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

View Full Document
2 Supply Schedule and Supply Curve Supply Schedule and Supply Curve Supply schedule : :     A tabular depiction of the numerical  relationship between the quantity supplied  and its own price. Supply curve : : A A  graphical representation of the  relationship between the quantity supplied  and its own price.
3 Supply schedule for hamburgers: Supply schedule for hamburgers: Price/lb Price/lb .            .            Quantity supplied Quantity supplied  \$  .50 100 lbs. 1.00 200 lbs. 1.50 300 lbs. 2.00 400 lbs. 2.50 500 lbs.

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

View Full Document
4 Relationship Between Supply and  Relationship Between Supply and   Quantity Supplied Q  Quantity Supplied Q s s As the price of hamburger increases,  ceteris paribus, the quantity supplied  increases.
5 The Supply Curve for Hamburger The Supply Curve for Hamburger : : Supply Curve Price Quantity Supplied per unit time

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

View Full Document
6 The Supply Curve: The Supply Curve: 1.One point on the supply curve represents  a single price / quantity  relationship. 2.The upward slope of the supply curve  indicates that the quantity supplied  increases with price.
7 3. A change in the commodity's own price results     in movement along the supply curve. Q / u.t. Price S S P 0 P 1 Q 0 Q 1 As price goes from P to P 1 , quantity supplied goes from Q 0  to Q 1

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

View Full Document
8 Increase in Supply: Increase in Supply: Is characterized by a shift of the supply curve to the  RIGHT. Price S 0 S 1 Q /u.t. At every price, quantity  supplied  is greater!
9 A Decrease in Supply: A Decrease in Supply: Is characterized by a shift of the supply curve to the  LEFT. Price Q /u.t. At every price, quantity  supplied  is less! S 0 S 1

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

View Full Document
10 Supply Defined: Supply Defined: Supply:  Relationship showing the various amounts  of a commodity that producers would be  willing and able  to sell at possible  alternative prices during a given time  period, ceteris paribus.
11 Quantity Supplied Defined: Quantity Supplied Defined: Quantity Supplied Quantity Supplied : :     Total amount of a commodity that all  firms are  willing and able to sell , at a  given price, during a given time period.

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

View Full Document
12 The Determinants of Supply The Determinants of Supply Commodity's own price: 1. P ↑ ⇒ Qs  ↑ , c.p.  (Law of Supply) 2.What type of relationship is  characterized by supply?  DIRECT 3.  Slopes up and to the right.
13 Number of Firms in the Industry Number of Firms in the Industry If the number of business firms producing  a product increases,  ceteris paribus, the supply curve shifts to the right.

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

View Full Document
14 Increased Business Firms Increased Business Firms Price S 1 Q /u.t.
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern