Unveiling the Law of Supply

• Economics
• Secondary Education
• Age 12

Unveiling the Law of Supply

Learning Objectives

Explain the law of supply

Interpret a supply schedule and a supply graph

What do you already know about the concept of supply in economics?

thecuriouseconomist.com

supply

law of supply

quantity supplied

supply schedule

the amount of goods available from the supplier

producers offer more of a good as its price increases and less as its price falls

the amount that a supplier is willing and able to supply at a specific price

a chart that lists how much of a good a supplier will offer at various prices

Understanding Supply

Supply refers to the quantity of a good or service that producers are willing and able to sell at different prices during a specific time period.

Law of Supply

The law of supply states that, all else being equal, as the price of a good increases, the quantity supplied by producers increases, and vice versa.

What does the law of supply state?

1. The law of supply only applies to services, not goods.
2. As the price of a good increases, the quantity supplied increases.
3. The quantity supplied remains constant regardless of price changes.
4. As the price of a good increases, the quantity supplied decreases.

How does the law of supply relate to price elasticity?

1. The law of supply implies that price elasticity of supply is always negative.
2. The law of supply has no relation to price elasticity.
3. The law of supply implies that price elasticity of supply is usually positive.
4. The law of supply suggests that price elasticity is irrelevant in determining quantity supplied.

Supply Schedule

A supply schedule is a table that shows the quantity of a good that producers are willing to sell at various prices.

00:19

Supply curves are

1. downward sloping
2. leftward sloping
3. upward sloping
4. rightward sloping

00:25

What does a supplu curve show?

01:01

The higher the price the ___________ oil is supplied, and the lower the price the quantity supplied is ___________

02:33

Do you remember what are the two factors that impact how prices are set?

Interpreting a Supply Graph

A supply graph illustrates the relationship between price and quantity supplied, typically showing an upward-sloping supply curve.

Review and Practice

Review the key concepts of supply and allow students to practice interpreting supply schedules and graphs.

Interpret the supply schedules (type your answers in the opposite box)

Write down 3 things you learned in this lesson.

Have students enter three things they learned in this lesson. With this they can indicate their own learning efficiency of this lesson.

Write down 2 things you want to know more about.

Here, students enter two things they would like to know more about. This not only increases involvement, but also gives them more ownership.

Ask 1 question about something you haven't quite understood yet.

The students indicate here (in question form) with which part of the material they still have difficulty. For the teacher, this not only provides insight into the extent to which the students understand/master the material, but also a good starting point for the next lesson.