The Concept of Supply for G9 Students.pptx

The Concept of Supply

1. THE CONCEPT OF SUPPLY

2. Discuss the concept of supply and factors affecting everyday living 1 Objectives

3. CONCEPT MAP OF THE LESSON

4. WHAT IS SUPPLY? Number of goods and services that suppliers are willing and able to sell at alternative prices at a given period of time.

5. WHAT IS SUPPLY? There are four terms that we must remember to fully understand the concept of supply: number willing able price

6. Number - this refers to the QUANTITY of the product or services (How many will you sell?) Willing- the willingness of the producer to sell (Do you really want to sell the product?)

7. Able - ability of the producer to sell (Can you really sell it at this particular price? Are you going to earn from it?) Price - how much is the product (How much are you willing to sell this product for?)

8. Does price affect the supply of the producers?

9. NOTE: THE RELATIONSHIP BETWEEN PRICE AND QUANTITY SUPPLIED IS DIRECT LAW OF SUPPLY PRICE SUPPLY PRICE SUPPLY

10. “Assuming other things are constant, the price and quantity supplied are directly proportional” Ceteris Paribus: All other things being equal 2

11. A table showing the units of the product, which the producer is willing and able to sell at alternative prices. SUPPLY SCHEDULE PRICE QUANTITY SUPPLY 1PHP 10 3PHP 20 5PHP 30 7PHP 40 10PHP 50 SUPPLY SCHEDULE OF GRAHAM BALLS

12. Shows the direct relationship of two variables, as the price increases, QS increases. SUPPLY SCHEDULE PRICE QUANTITY SUPPLY 1PHP 10 3PHP 20 5PHP 30 7PHP 40 10PHP 50 SUPPLY SCHEDULE OF GRAHAM BALLS

13. WHAT IS SUPPLY FUNCTION? The supply function shows the DIRECT relationship of QUANTITY SUPPLIED and PRICE for a certain product. This means that when price increases , quantity supplied increases and vice versa.

14. WHAT IS SUPPLY CURVE? It is the graphical representation of the inverse relationship of price and quantity supplied which the producer is willing and able to sell.

15. SUPPLY CURVE In c reasing Price Increasing Quantity Supplied Y axis X axis

16. MARKET SUPPLY Combination of all the SUPPLIES in the market

17. DERTERMINANTS OF SUPPLY

18. SHIFT OF SUPPLY CURVE This is the Supply curve when price remains constant but the Supply increases. It shifts to the right.

19. INCREASE IN SUPPLY (SAME PRICE) Use of technology Subsidy on the expenditures of producers Increase in the number of sellers Increase in the price of related products

20. SHIFT OF SUPPLY CURVE This is the supply curve when price remains constant but the supply decreases. It shifts to the left.

21. DECREASE IN SUPPLY (SAME PRICE) Calamities Decrease in the number of sellers Lack of subsidy Lack of technology Low prices of commodities

22. SUPPLY FUNCTION Supply Function is a mathematical expression of the relationship of two variables.   Qs= - a+bP   Qs- Quantity Supplied P- price -a- Q intercept (When the Quantity Supplied at a certain price is 0.) b- slope ( The positive sign indicates direct )

23. SUPPLY FUNCTION Example: Qs=-200+20P   Let us try to get Quantity Supply if the given is price=50. 1. Substitute the value given for PRICE (50). Qs= -200+ 20(50)   2. Multiply 20 and 50. Qs=-200+1000   3. Subtract. Qs=800   This means that at price 50, 800 pieces of item will be sold.                

24. Activity 2.2 Supply Worksheet (Individual Task) QS=-100+2P POINT QS PRICE A 100 B 300 C 300 D 700 E 500

25. Activity 2.1 Supply Worksheet (Individual Task) QS=-100+2P POINT QS PRICE A 100 100 B 300 200 C 500 300 D 700 400 E 900 500

26. ELASTICITY OF SUPPLY The degree of responsiveness of the changes in the supply for a product relative to changes in prices

27. HOW TO GET THE ELASTICITY OF SUPPLY

28. HOW TO GET THE ELASTICITY OF SUPPLY

29. TYPES OF ELASTICITY Inelastic Elastic Unitary

30. INELASTIC E <1 Supplier’s response is less than the price change

31. ELASTIC E >1 Producer’s response is more than the price change These are necessities.

32. UNITARY E=1 Producer’s response is equal to the price change.

33. HOW TO GET THE ELASTICITY OF SUPPLY

34. INDIVIDUAL ACTIVITY 2

35. INDIVIDUAL ACTIVITY 1. P1=1700 P2=2500 Q1=500 Q2=800 2 . P1=1100 P2=2700 Q1=300 Q2=600 Compute the elasticity of the following items.

36. THINK TANK 2

37. Would an economy work if the law of supply ceases to exist? As a student how would you apply the law of supply in your daily life? 1 2 3 THINK TANK As a student how would you value the importance of learning the law of supply

38. Answer the following questions. Write your answer on a clean piece paper. Quiz 3

39. Directions: Write T if the statement is True and F if the statement is False. 1 Market is the place where the producers and consumers meet. 2 The Latin expression that means “All things are equal” is Ceteris Paribus . 3 Law of Supply states that if the price goes up the quantity supply goes up.

40. Directions: Write T if the statement is True and F if the statement is False. 4 Market supply refers to the all supply in the market 5 Supply schedule pertains to a graphical representation of schedule of demand

41. Answer the following questions. Write your answer on notebook. Assignment 3

42. HAVE A STRESS FREE AND ACADS FREE VACATION 1 SPEND MORE TIME WITH YOUR FAMILY 2 3 HAVE A GOOD REST , YOU’VE DONE WELL TODAY