CH 3 Supply & Demand ECON 2301
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How many gallons per day do sellers wish to sell if the price of milk is $2 per gallon?
3K
Supply Curve
A schedule or graph showing the quantity that sellers wish to sell at each price.
If the price of butter increases, the quantity of butter supplied will __
Increase. Sellers have lower marginal cost of producing butter.
A price ceiling will have what effect on a market if set above the equilibrium price?
No effect, no tendency for prices to rise above equilibrium price.
What type of graph is pictured?
Supply
This picture captures daily ____ of tennis balls
Supply of
When the price of milk is $3 per gallon,
The market is in equilibrium.
When there is excess supply, seller has incentive to
lower prices
