1. 
What do you think of when you hear the word
supply?

How do you think supply will be different from
demand?

2. Why do producers want to provide products at the highest
possible price?
SUPPLY

3. SUPPLY

Supply is the willingness (desire) and ability
of producers to offer goods and services for
sale

Similar to demand: willingness and ability!

Ex: A farmer on antarctica will be unable to
produce any crops no matter his/her desire.
 Thus,
he/she cannot supply markets with
products.

4. LAW OF SUPPLY
As prices fall, quantity supplied falls.
 As prices increase, quantity supplied rises.
 This is a direct relationship or positive
correlation.


Example: A farmer typically grows carrots and
tomatoes. If the market price is $1 per kg of
tomatoes then he/she might produce 50 kg of
tomatoes. If the price drops to $0.50 then
he/she might only produce 25kg of tomatoes ,
so he/she can focus on more carrots.

5. SUPPLY SCHEDULE

A supply schedule is a table that shows how
much of a good or service an individual is
willing and able to offer at each price.

A market supply schedule is a table that
shows how much of a good or service all
producers in a market are willing and able to
offer

6. EXAMPLE OF A SUPPLY SCHEDULE
Look at page 132.
 How many pounds of tomatoes will the
Smith’s offer for sale if the price is 1.75?


How is this supply schedule different from a
demand schedule?

7. EXAMPLE OF MARKET SUPPLY SCHEDULE
P.133
 How does the quantity supplied of tomatoes
change when the prices rises from .75 a
pound to 1.75 a pound?


Increases from 100 to 300: an increase of
200lbs

8. APPLICATION B
Imagine that you own a health food store that
sells several brands of nutrition bars.
 Create a supply schedule showing how many
bars you would be willing to sell each month
at prices of 5, 4, 3, 2, and 1


9. SUPPLY CURVES

Show the data from supply schedules in
graph form

Market supply schedules show data from
market supply schedules in graph form.

10. APPLYING APPLICATION B

Take the market schedule you made for
application B and create a supply curve

How does this curve look different from a
demand curve?

11. SUPPLY CURVES CONT..
Look at page 134, figure 5.4
 How many pounds of tomatoes will the
Smiths offer for sale when the price is 1.50?


Look at figure 5.5
 At
which price will all the fruit and vegetable
stands want to sell 200 pounds of tomatoes?