CHAPTER+5+ECON

Objectives: Introduce and define the supply curve and describe elasticity of supply is measured.

(section 1)

Idendify the determinants of supply and how changes affect the supply curve. Additionally, compare and contrast shifts in the supply curve with movements along the supply curve.

Determinants of Supply:

1. The cost of resources used to make the good. 2. The price of other goods these resources could make. 3. The technology used to make the good. 4. Producer expectations. 5. The number opf sellers in the market.

Examine marginal product; how does it vary as firms employ more labor in the short run? Examine marginal cost curves and distinguish between economies of scale and diseconomies of scale in the long run.