Chapter 5
Supply
Chapter 5 Section 1:
What is Supply
Main Idea: For almost any good or service, the higher
the price, the larger the quantity that will be offered for
sale.
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Supply
Law of Supply
Supply schedule
Supply curve
Market supply curve
Quantity supplied
Change in quantity supplied
Change in supply
Subsidy
Supply elasticity
Vocabulary
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What is the difference between a supply
schedule and a supply curve?
How are market supply curves obtained?
What factors cause change in supply?
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A
B
C
D
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F
G
Notes
Study the graphs in figures 5.1, 5.2, 5.3,
5.4
 Answer the questions (in complete
sentences) that appear in yellow at the
bottom of each figure box.
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Assignment to turn in
Ch 5 section 2: The
Theory of Production
Main Idea: A change in the variable input called labor
results in a change in production
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Theory of production
Short run
Long run
Law of variable proportions
production function
raw materials
total product
marginal product
stages of production
diminishing returns
vocabulary
What relationship is the theory of
production based on?
 How does marginal product change in
each of the 3 stages of production
 What will happen if companies continue to
hire workers?
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Notes
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Figure 5.5
Activity to turn in
Ch 5 section 3: Cost,
Revenue, and Profit
Maximization
Main Idea: Profit is maximized when the marginal costs
of production equal the marginal revenue from sales.
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Fixed cost
Overhead
Variable cost
Total cost
Marginal cost
E-commerce
Total revenue
Marginal revenue
Marginal analysis
Break even point
Profit-maximizing quantity of output
vocabulary
What are the 4 measures of cost?
 What are the 2 measures of revenue?
 How is marginal analysis used to
determine break-even and profit
maximizing decisions?
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Notes