5.1+Notes+and+Questions

Section 5.1 Understanding Supply

 * ==Supply is the amount of goods available==
 * ==The law of supply states that the higher the price the larger quantity produced==
 * ==Quantity supplied to describe how much of a good is offered for sale at a specific price==
 * ==Law of Supply develops from the choices of both current and new producers of a good==
 * ==As the price of a good rises producers will produce more to gain additional revenue==
 * ==A supply schedule shows the relationship between price and quantity supplied for a specific good==
 * ==variables are factors that can change==
 * ==Supply and demand schedules are very specific==
 * ==A market supply schedule shows the relationship between prices and the total quantity supplied by all firms.==
 * **When the data points in the supply schedule are graphed, thy create a supply curve Elasticity of supply is based on the same concept, the way suppliers respond to changes in price. QUESTIONS # 1-5**
 * **1. The law of supply means that if prices go up people will create more of the product to meet the demand.**
 * **2. Quantity supplied is at a specific price and quantity while supply is more general.**
 * **3. If it elastic people will start to buy less of it if the price rises.**
 * **4. If their is a higher demand they will have to start producing more oil.**
 * **5. A. elastic- not a necessity dont need to spend the money B. Elastic- You could walk or ride the bus for cheaper C. Elastic- You could take your own photos not needed.**