supply is quantities that producers or sellers are willing and able to produce/sell at varies prices.
The Law of Supply: there is a direct relationship between price and quantity supplied
what causes a "change in quantity supplied"? (changesQS)
* Change in price
What causes a "change in supplied"?
1) change in technology
2) change in taxes or subsidies
3) change in the number of sellers
4) change in resources prices of cost of production
5) change in weather
6) change in expectations
% Change in Quantity
new quantity - old quantity divided by old quantity
% change in Price
new price - old price divided by old price
PED
divide the % quantity by % price
TR= Prices x Quantity
Equilibrium- the point at which the supply curve and demand curve intersect
Shortage QD> QS
Surplus QS>QD
Price Floor- government has control on how low a price can be charged for a product
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