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5.1 - Understanding Supply October 6 _amp; 7_ 2010 Please Do Now

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5.1 - Understanding Supply October 6 _amp; 7_ 2010 Please Do Now Powered By Docstoc
					       5.1 - Understanding
              Supply
       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.
         Objectives

• Explain the law of supply
• Interpret a supply graph using a supply
  schedule
 The Law of Supply
• Supply is the amount of goods
  available.
• 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
  price.
Law of Supply
      The Supply Schedule &
                      Curve
• A supply schedule and
    curve shows the
    relationship between
    price and quantity
    supplied for a specific
    good.

•   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.
Elastic Supply
                When supply is elastic,
               a small increase in price
   Price          has a big effect on
                        supply.




      Supply
      Check your
    understanding...
• 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
          Class Activity
                Vocabulary Challenge
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
           (75 points)
                                     all 9 words. (75 points)
       Class Activity
• YOU ARE NOW AN ICE CREAM
  PALOR OWNER!
• 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
  page 105).
     Home Learning

• Read pages 100 - 106.
• Answer questions 2-6 even - write
  questions & answers.
• Due:   Friday (A) or Monday (B)

				
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