period 5 daily writing prompt what does it mean when supply is elastic?
TRANSCRIPT
Production Costs
• Fixed Cost – cost that does not change, no matter how much of a good is produced.–Ex. Rent, salaries, machine
repairs
Production Costs
• Variable Costs – Costs that rise or fall depending on the quantity produced.–Ex. Electricity, heat
• Total costs = fixed costs
Government’s influence on supply• Government can encourage or
discourage production
• Subsidy – a government payment that supports a business or market.
• Excise tax – a tax on the production or sale of a good. –Examples?
• Regulation – government intervention in a market that affects the price, quantity, or quality of a good.–Ex. Automobiles – pollution, MPG
standards
Government’s influence on supply
Future Expectations of Prices
• If suppliers expect prices to rise, they will store their goods.
• If suppliers expect prices to fall, they will place goods on the market immediately
Do Now
• Grab a textbook• Answer questions 1-3 & 5 on
pg. 120• ***Those absent yesterday
can also work on Anticipation Guide***
Cablevision vs. FOX1) What is the issue being discussed in this
article?2) How much money is FOX asking for?3) What different incentives are present in
this situation?4) How could availability of substitutes
influence demand in this situation?5) Could the government intervene to solve
this problem?6) Who is to blame???