๐ Topic Summary
The concepts of "quantity supplied" and "change in supply" are fundamental to understanding how markets work. "Quantity supplied" refers to the specific amount of a good or service that producers are willing to sell at a particular price. It represents a single point on the supply curve. A "change in supply," on the other hand, represents a shift of the entire supply curve. This shift occurs due to factors other than price, such as changes in input costs, technology, or the number of sellers.
Think of it this way: if the price of coffee beans increases, coffee shops will offer more coffee for sale (an increase in quantity supplied). But if a new, more efficient coffee machine is invented, all coffee shops can produce more coffee at every price (an increase in supply).
๐ง Part A: Vocabulary
Match the terms with their definitions:
| Term |
Definition |
| 1. Supply Curve |
A. Factors other than price that can shift the entire supply curve. |
| 2. Quantity Supplied |
B. A graphical representation showing the relationship between price and quantity supplied. |
| 3. Change in Supply |
C. Resources used in the production process. |
| 4. Inputs |
D. The amount of a good or service producers are willing to sell at a specific price. |
| 5. Market Equilibrium |
E. The point where quantity supplied equals quantity demanded. |
โ๏ธ Part B: Fill in the Blanks
Complete the following paragraph with the correct terms:
A change in __________ refers to a shift of the entire supply curve, which can be caused by changes in __________, technology, or the number of __________. This is different from a change in __________ which is simply a movement along the supply curve due to a change in __________. The __________ is a visual representation of the relationship between price and quantity supplied.
๐ค Part C: Critical Thinking
Explain, using real-world examples, how a technological advancement could lead to a change in supply for smartphones. Be sure to explain which factor of supply is being affected!