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Law of Supply How Much Do We Make?

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Page 1: Law of Supply How Much Do We Make?. S S2

Law of Supply

How Much Do We Make?

Page 2: Law of Supply How Much Do We Make?. S S2
Page 3: Law of Supply How Much Do We Make?. S S2
Page 4: Law of Supply How Much Do We Make?. S S2
Page 5: Law of Supply How Much Do We Make?. S S2

S

Page 6: Law of Supply How Much Do We Make?. S S2
Page 7: Law of Supply How Much Do We Make?. S S2

S2

Page 8: Law of Supply How Much Do We Make?. S S2
Page 9: Law of Supply How Much Do We Make?. S S2

S3

Page 10: Law of Supply How Much Do We Make?. S S2

If the cost of an input INCREASES, Supply of that good will DECREASE (shift to the left)

If the cost of an input DECREASES, Supply of that good will INCREASE (shift to the right)

If the cost of Labor INCREASES, Supply of that good will DECREASE (shift to the left)

If the cost of Labor DECREASES, Supply of that good will INCREASE (shift to the right)

Page 11: Law of Supply How Much Do We Make?. S S2

As new technology is applied to production, Supply of that good will INCREASE (shift to the right)

As the number of sellers INCREASES, Supply of that good will INCREASE (shift to the right)

As the number of sellers DECREASES, Supply of that good will DECREASE (shift to the left)

Page 12: Law of Supply How Much Do We Make?. S S2

If the price of a good is expected to INCREASE, the Supply of that good in the short term will DECREASE (shift to the left)

If the price of a good is expected to DECREASE, the Supply of that good in the short term will INCREASE (shift to the right)

If government regulation on a good INCREASES, the Supply of that good will DECREASE (shift to the left)

If government regulation on a good DECREASES, the Supply of that good will INCREASE (shift to the right)

Page 13: Law of Supply How Much Do We Make?. S S2

Changes in Supply

• Supply ShockA sudden decrease in production as a result of a natural disaster or accident.

Supply DECREASES


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Law of Supply How Much Do We Make?. Quantity Supplied S

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