500 word summary on SUPPLY
Talk about determinants of supply
1. Input costs, input prices, resource prices. (these all mean the same thing)
2. Taxes
3. Technology
4. # of sellers
5.Price of OTHER goods that the company makes
6. seller expectations
Talk about law of supply
The Law of Supply holds all else constant but one of things changes it changes the whole supply.
Also talk about how An increase in supply means sellers will sell more of the good at all prices and is shown as a right shift in the supply curve.
An decrease in supply means sellers will sell less of the good at all prices and is shown as a left shift in the supply curve.
Talk about how An increase in supply means sellers will sell more of the good at all prices and is shown as a right shift in the supply curve.
