Chapter 5 Supply

5(1) Understanding Supply
Identify
Supply
Law of Supply
Quantity Supplied
Supply Schedule
Variable
Market Supply Schedule
Supply Curve
Market Supply Curve
Elasticity of Supply
everything is elastic over time

Look at figure 5.1 (101)  How is the law of supply different than the law of demand?

Look at the picture (102)  What causes different genres of music to be created?

Look at figure 5.2 (103)  What does the chart say about the pizzeria owners decisions?

Look at figure 5.5 (105) If a  supply is inelastic, how will supply react to a small increase in price?

Look at the oranges on 106?  Why is its supply inelastic, but its demand is elastic?

5(1)  questions on page 106: ____________________________


5(2)  Costs of Production
Identify
marginal product of labor
increasing marginal costs
diminishing marginal returns
fixed cost
variable cost
marginal cost
marginal revenue
operating cost

Look at figure 5.6 (109) Why does marginal product of labor decrease after the 3rd bean bag chair?

Look at figure 5.7.  What is the difference between increasing, diminishing, and negative marginal returns?


What example is given in the fast fact (110)?

Look at figure 5.8  Identify examples of  fixed and  variable cost?

Look at 5.9(111)  Why is marginal revenue always $24?

Look at  5.10 (112) Why does the marginal cost curve look like a check?

Why is the shuttered factory pictured on page 114?

5.2 Questions   Group   _____________________________________











5.3 Changes in Supply
Identify
Subsidy
excise tax
regulation

Look at 5.12 (117)   Which graph shows the effects  of higher costs?  Left or Right

Read Global Connections (118) How did EU subsidies lead to a wine lake and a butter mountain?

Look at the picture (118)  Who does the French government subsidize?  Why when food is cheaper from other sources?

Why is the windmill farm pictured on page 119?

Look at the picture on page 120.  Why does inflation lead to shortages?

5(3)  Questions  Group ______________________________