Applied Economics Lesson 6, Slides of Economics

Download Applied Economics Lesson 6 and more Slides Economics in PDF only on Docsity! LESSON 6: THE SUPPLY CURVE Prepared by: Melvin O. Alejandrino What is Supply Curve?  A schedule showing a direct or positive relationship between the price of the commodity and the level of output the seller is willing to supply at a given point in time, ceteris paribus. LAW OF SUPPLY  Price and Supply are directly proportional.  Price Supply  Price Supply FACTORS AFFECTING SUPPLYPrice of Production of Units Weather Technology Expectations Price of Production of Units  Production of any commodity will require the use of two major inputs.  Intermediate Inputs – refer to materials that needs to be processed to be transformed. (wood, steel, plastic, sugar)  Factor Inputs – refer to materials that contribute to the production of good. (machines, land, labor, capital)