5.1 - Understanding
October 6 & 7, 2010
Please Do Now:
Imagine you own a factory that produces sunglasses and that the price of
sunglasses begins to rise rapidly.
Do you think that you would produce more pair of sunglasses, fewer pairs, or
the same number as before.
• Explain the law of supply
• Interpret a supply graph using a supply
The Law of Supply
• Supply is the amount of goods
• Law of supply states the higher the
price, the larger the quantity produced.
• Quantity supplied describes how much
of a good is offered for sale at a specific
Law of Supply
The Supply Schedule &
• A supply schedule and
curve shows the
price and quantity
supplied for a specific
• Market supply
schedule and curve
shows the relationship
between prices and
the total quantity
supplied by all firms in
a particular market.
Supply and Elasticity
• Elasticity of supply is a measure of the
way quantity supplied reacts to a
change in price.
• Values of elasticity (elastic, inelastic,
and unitary) carry the same values as
those in demand.
When supply is elastic,
a small increase in price
Price has a big effect on
• The tendency of suppliers to offer more
of a good at a higher price is know as ...
• A) Law of Supply
• B) Supply
• C) Quantity Supplied
Choose as many activities as possible to earn a total of 100 points.
Write a sentence for 5 of the key Create a comic strip for 5 of the
terms. key terms.
(25 points) (25 points)
Write a letter to the President of
Create a crossword puzzle using
the United States explaining the
all key terms - 9 words
concept of supply. You must use
all 9 words. (75 points)
• YOU ARE NOW AN ICE CREAM
• Working with a partner, create a supply
schedule for ice cream cones (similar to
page 103). Then, turn the supply
schedule into a supply curve (similar to
• Read pages 100 - 106.
• Answer questions 2-6 even - write
questions & answers.
• Due: Friday (A) or Monday (B)