Transcript elasticity of supply

Supply Flashcards
• For each determinant of supply (7 total)
create a flashcard that includes the following:
– FRONT of CARD - Name of Determinant
– BACK of CARD:
• Picture that describes the determinant
• Explain how it affects supply (can use arrows)
Elasticity of Supply
• The degree to which price changes affect
the quantity supplied.
• We know that changes in price will affect supply
for the product…but HOW MUCH? Will it have a
huge effect or not?
Elastic Supply
• Exists when a small change in price causes a
major change in the quantity supplied.
• Products with elastic supply usually can be
made…
• Quickly
• Inexpensively
• Using a few, readily available resources.
Inelastic Supply
• Exists when a small change in price has little impact on the
quantity supplied.
• Products with inelastic supply usually take a lot of…
• Time
• Money
• Resources that are not readily available
Examples…
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Gold
Damon Lilard Bobbleheads
Crayons
Beach front property
Space Shuttles