II. Quantity Supplied (Qs) - number of goods offered at a specific price

III. Law of Supply: As P increases, Qs increases

As P decreases, Qs decreases

*P & Qs have a direct relationship

IV. Supply Schedule: table displaying the Law of Supply

V. Supply Curve - slopes upward

VI. Movement along a supply curve = caused by change in P

VII. Shift in Supply Curve = change in amount offered at all prices (caused by change

in other factors called Determinants of Supply)

1. shift right = increase in supply
2. shift left = decrease in supply

VIII. Determinants of Supply (factors that cause Supply Curve to shift)

1. Cost of inputs (resources)

0. costs increase = supply decreases
1. costs decrease = supply increases

1. Productivity
2. Technology - more technology will increase supply
3. Number of sellers - more sellers = more supply
4. Taxes & subsidies

0. subsidy - govt. payment (grant) to encourage business/development

1. increase supply
2. taxes - decrease supply

1. Govt. regulation

1. more = decrease supply
2. less = increase supply