Chapter 3 homework
• Number 4: Vincent Diller
• Number 8: Tess Duffin
• Number 10: Jax Gitzes
• Number 18: Elizabeth Gombosi
• Alternate: Winston Hibberd
Supply (cont’d)
• Supply Schedule—a table that shows the quantity firms are willing and able to supply at various prices.
• Supply Curve—a graph that shows the quantities that sellers are willing and able to supply at different prices.
Changes in Supply
• Prices of inputs (such as wages)
• Technology
• Natural disruptions (such as bad weather)
• The number of firms in the market
• Expectations
• Government policies
Equilibrium
• The price at which the quantity demanded equals the quantity supplied and the market “clears.” No tendency for price or quantity to change.
What if we are not in equilibrium??
• Surplus or Shortage
• No direct intervention or assistance from the government or other oversight body is required to “fix” the problem The Self-Correcting Market
Surpluses
• Prices decrease: Producers are less willing and able to supply
coffee Some consumers are more willing and
able to buy coffee The market self-corrects, and the surplus is
eliminated!