Chapter 5 Section 3 econ study guide
SECTION
3
What Factors Affect Supply?
OBJECTIVES
KEY TERMS
TA K I N G N O T E S
In Section 3, you will
change in quantity supplied, p. 146
• explain the difference between change in quantity supplied and change in supply
change in supply, p. 148
• understand how to determine a change in supply
technology, p. 149
As you read Section 3, complete a chart like this one showing each factor that causes change in supply.
Use the Graphic Organizer at
Interactive Review @ ClassZone.com
• identify the factors that can cause a change in supply
regulation, p. 150
input costs, p. 148 labor productivity, p. 149 excise tax, p. 149
Factor That
Changes Supply
Reason Why
Supply Changes
Changes in Quantity Supplied
KE Y CON CE P T S
QUICK REFERENCE
Change in quantity supplied is a rise or fall
in the amount producers offer for sale because of a change in price.
The supply schedules and supply curves that you studied in Section 1 were created using the assumption that all other economic factors except the price of tomatoes would remain the same. If all other factors remain the same, then the only thing that influences how many tomatoes producers will offer for sale is the price of those tomatoes. The supply curve shows that pattern.
In Chapter 4, you learned the difference between change in demand and change in quantity demanded. Change in quantity demanded is shown by the points along an existing demand curve, while change in demand actually shifts the demand curve itself. Similarly, the different points on a supply curve show change in quantity supplied. Change in quantity supplied is an increase or decrease in the amount of a good or service that producers are willing to sell because of a change in price.
A change in the price of bicycles. . .
146 Chapter 5
. . . causes a change in the quantity supplied.
E XAM P L E
Changes Along a Supply Curve
Each new point on the supply curve shows a change in quantity supplied. A change in quantity supplied does not
3
What Factors Affect Supply?
OBJECTIVES
KEY TERMS
TA K I N G N O T E S
In Section 3, you will
change in quantity supplied, p. 146
• explain the difference between change in quantity supplied and change in supply
change in supply, p. 148
• understand how to determine a change in supply
technology, p. 149
As you read Section 3, complete a chart like this one showing each factor that causes change in supply.
Use the Graphic Organizer at
Interactive Review @ ClassZone.com
• identify the factors that can cause a change in supply
regulation, p. 150
input costs, p. 148 labor productivity, p. 149 excise tax, p. 149
Factor That
Changes Supply
Reason Why
Supply Changes
Changes in Quantity Supplied
KE Y CON CE P T S
QUICK REFERENCE
Change in quantity supplied is a rise or fall
in the amount producers offer for sale because of a change in price.
The supply schedules and supply curves that you studied in Section 1 were created using the assumption that all other economic factors except the price of tomatoes would remain the same. If all other factors remain the same, then the only thing that influences how many tomatoes producers will offer for sale is the price of those tomatoes. The supply curve shows that pattern.
In Chapter 4, you learned the difference between change in demand and change in quantity demanded. Change in quantity demanded is shown by the points along an existing demand curve, while change in demand actually shifts the demand curve itself. Similarly, the different points on a supply curve show change in quantity supplied. Change in quantity supplied is an increase or decrease in the amount of a good or service that producers are willing to sell because of a change in price.
A change in the price of bicycles. . .
146 Chapter 5
. . . causes a change in the quantity supplied.
E XAM P L E
Changes Along a Supply Curve
Each new point on the supply curve shows a change in quantity supplied. A change in quantity supplied does not