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Economics & Personal Finance--Elasticity of Supply (Microeconomics)

Added Aug 28, 2022 •

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Supply Elasticity is a measure of the way in which quantity supplied responds to a change in price. If a small change in price leads to a relatively larger increase in output, then supply is elastic. On the other hand, if the quantity supplied changes very little, then the supply is inelastic.

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good morning students today is Wednesday and is 31st of August you watching this recording cuz I'm out today imma be at Fort Gordon attending my son-in-law's graduation from inside van training in the Army and so I'll be out for the day so severe if you watching this it's because I'm out but anyway thank you for watching the sub lesson and hope that you will listen and follow and the Jupiter follow the steps the things that I present to you and will go ahead and share the PowerPoint now I'm going to start with that haven't done this now for a little bit more than a year because I was last couple of school years 2021 school year we've been using teams writes me just make sure I do this year PowerPoint hope you don't spit to see that at home price of days August 31st 2022 just wanted to another plug for the economics handbook skills just remember that you need to complete that that is a project gray that's something we spent the first week on during the first week of the class and so I think as soon as I have turned it in but some of you still need to turn that into me get it to me I won't take off points for being late maybe that's my policy of no great whatever great job I won't take off points for being late just got to get your work so just make sure you do that and just more that skills handbook it's going to look like this me bring them up here real quick but I'm on my way so you have to be in on the website where you go to on the website for those any refresh will get a cup Houston's to book I'll look at the line graphs and bar graphs tables and charts Reading Mass percentages to Amin's median normal real values as well as understanding interest rates and financial paid so he's the kind of skills that you need to understand when you do certain exercises in this economic class and really something should have already been done but you still haven't completed that so very important that you get that done as soon as possible ASAP okay alright so let's go back to our our Point presentation here all right so yesterday we discussed Supply I'm going to teach you more about Supply today no supplies important demand Drive Supply and core Supply was going to put out those products or services that people to man and so-so supplies very very important to meet the demands of consumers and life good Monday and Tuesday we stand at 3 we're demonstrating understanding the basic my crank economic principles and we've been doing that since the last week for Scandal three last week it was we looked at demand this week we're going to supply women apply the laws of supply and demand terminal changes in market conditions affect price we're going to buy this week in the next week we'll look at the combination of the two spline to man and then changing prices Nets or so our primary focus today and this week is looking at the law of supply it was a theory production cable Theory production just think about that basically says that the theory that those things that people want to be produced will be produced and that the producers will satisfy the demands of those people that are on the market that one a certain item and so that's the theory so you going to produce what is in demand that's out there all right so real quick here a little quicker station on economics here supply side of economics my purple thing work you know it's so funny that you you beforehand I go through and I wrap up mix try to make sure everything is working and now decides not to work for me here law of supply alright well I'm going to have to do I'll do this let me go out here stop sharing her just for a minute I apologize for some reason the things won't click and won't bring up my PowerPoint so what I'll do is I'll go to my website and I'll just show you talk about some important things from Supply and do it that way I apologize I know why that doesn't want to work properly and any other time it works when I'm in class and now once I'm going to need to work it's not coming up actually before I do that let me let me just double-check I don't have it in my copy that PowerPoint in my thing cuz you lie in bed it with my main PowerPoint and saw them keep a copy on my laptop. I have a copy on my desktop computer in school but I'm at home right now recording this so I'm just going to double check and make sure I don't have a copy of that same material becomes different show it's a copy here that PowerPoint no that's that's really what I want to talk about copy of that chapter that I need there I apologize you oh no matter how much you that's that's life no matter how much you plan and they have things and you think you got it all planned out and mapped out it's going to be a easy things come up so here with you all this new thing I so we'll just look at chapter 5 Mi just show you a copy of the section of the book that you need to work out of and I apologize at the PowerPoint thing wasn't working right so bad at school I had. Do you have a copy of that PowerPoint presentation on my desktop there but this my laptop I don't have it on my laptop so anyway you can be looking at Supply this chapter of course that you've been working in here and so today you should be working on Section 3 in chapter 5 here and so you look at the see that's all that's the section go to 65 Section 3 here so you can look at cause of revenue and profit maximization Max maximization is entrepreneur this is very very important to them because they want to maximize their profits and make the most and so they have to measure their cost because you need to keep costs down so you can maximize your profits every business map of call it's going to have to just like every household Bill C note to pay the rent to got to pay the mortgage sure you got to pay the light bill is that utility bill the water bill and so all businesses to run they have to help pay the cost and labor capital it's very important and so the idea is to measure their car so they can keep those down and and maximize make the most money that they can know for the betterment of the company as well as a better and better of the employees and in the afternoon Ryan you can read about that here in Section 3 and the in Section 3 they even talk about internet stores in a member markets are not just stores that we go into work because buyers and sellers in stores and malls the markets can be online well with the Ecommerce and then that's very important and so you can look at some mergers here is going to go by the measures of Revenue different things so go through and read that section and then at the end. And of course on the section three assessment song Air Supply says that as the price goes up the supply goes up so it's a direct relationship or is it the opposite of the man that we took the last remember demand is an inverse relationship has a price goes up demand goes down well I Supply goes up as the price goes up Supply was a why because suppliers want to make more money and so the more money they can make the more they're willing to sell because they can make more money and so was supplier let's just see it as a Ruck example no car dealership you know they're still cars of cars are only like $1,000 for all those sell 20 cars $4,000 again this is just a rough example a new car someone but then if you say Okay $2,000 is what I paid $2,000 for it when Supply 50 cars cuz they they can make more money and a lot more money so that's the price goes up Supply goes I've been so that is a positive slope it rises from left to right where is the man is the opposite it falls from left to right and so that is the law of supply and and of course that supply curve can shift depending on some of the factors that affect enzyme Stop Pop That so let me go back here I got to go back to my PowerPoint share that go back here spending bring that up the old saw that sorry about this technology man this is really are there we go all right let me go back to the PowerPoint presentation we're looking at here and share that with you can like as a sort of the technical difficulties and it look like a close up my PowerPoint okay I'm have to go back and grab my PowerPoint your eye I'm so sorry man this is haven't done teams since last school year and there were actually was a really poor actually the year before last we are the last 4 years the time give me a second I got to bring back up the carport he kicked those on my PowerPoint that I had open that we began the reporting off with so I appreciate your patience I guess that technology can't live with that can live with and because she would up down to where we were send WhatsApp okay that's where the pop right here okay now I got to share that with you all so should be cute up now so let me go back out too much sugar butt in here Sloan okay there it is yeah I had to bring it back up so like I said just getting back used to games and doing that indignant okay so let's go back to the slide we left off on this light right here but like I said I have a copy of this at on my desktop and so if I had known this wouldn't work I would have put it on my computer so but anyway I just showed you the book just remember and General Supply as as the price goes up Supply goes up why because Sylvia suppliers entrepreneur is that run businesses they want to make more money and the more the more they're willing to provide you so they can make those no profits and I just gave you the rough example with the car dealership owner who sells 20 cars for $1,000 then the price goes up the $2,000 anyone saw 450 car make a lot more money with those 50 cars and then that so it goes back down then of course the Mountain Supply me provides and be up there so all right so what you can do is list three real life examples of change in Supply and you can either write it down on a piece of paper and give it to me on Thursday when I come to class when I'm back or you can send it to me my emails in. Smiley at jcsd. send me those three real life examples of change in Supply and you do that and that's based upon what we talked about Monday and Tuesday so think about that I sometimes something happens to cause a change in Supply which is a situation with suppliers offer even Master product for sale at all possible prices and of course again there's a price goes up surprised it wasn't Supply more but what will happen to that Supply demand to can affect Supply because people don't demand something and suppliers obviously they're not going to waste resources are going to provide a lot less what's the matter if you do have a question, do you know you can there should be an email or I can just tell me when I come to class on Thursday for work cannot start I know I've done this before and there's been no sound that sounds stupid check and make sure there's sound I'm going to put on the closed caption to the totally the sound should be there no because I did when I shared it with you I have the video that we just go back and double-check I just want to make sure that the sound go back to the share button thing here preciate your patience here I just want to double-check and make sure that sound is on should I come up here or in the hopefully the sound should be there I have them closed caption to all right so looking up the price elasticity of supply Justice Boomers respond to changes in the price of a good by changing their demand for it producers respond to changes in the price of a good by changing the amount of supplies typically suppliers will increase the quantity supplied of an item if they experienced an increase in the price of that quantity supplied usually has a positive or direct relationship of price the price elasticity of supply is a measure just how responsive quantity supplied is to a change in price price elasticity of why is calculated by dividing the percentage change in quantity supplied by the percentage change in price because of the traditionally positive relationship between price and quantity supplied the price elasticity of supply will be greater than or equal to 0 for example if the price of fingernail clippers suddenly dropped by 50% the number of fingernail clippers produced would also fall if the quantity supplied decreased by 30% the price elasticity of supply would be 30% / 50 percent which is an electricity of 6 much like the man Supply elasticities can be classified as being elastic or inelastic and elastic Supply occurs when the Quan give a good or service that Producers Supply is relatively sensitive to changes in the price the percentage change in the price is larger than the percentage change in quantity supplied this means that if the price of a good or service decreases by 10% seller the quantity supplied by more than 10% in this case sellers are pretty sensitive to changes in the price of their product because price greatly impacts the change in the quantity they will want to produce an inelastic supply arises whenever the supply of a good service does not change much according to the price of that good or service when calculated the price elasticity of supply is between 0 and 1 for example a 10% increase in the price of a good causes sellers to increase the quantity supplied by has been 10%. The sellers are relatively insensitive to price changes because price changes do not greatly impact the quantity they want to provide suppose there's a 10% increase in the price of cheese Farms then decide to increase production by 5% this means there's a price elasticity of supply which is 5% / 10% for an elasticity of five which is considered any lastik change in price causes an infinite change in Supply this is a perfectly inelastic supply in this case sellers are so sensitive to a decrease in the price of their product that they reduce the quantity supplied 20 is a horizontal line This is a hypothetical example that does not really exist in reality it's difficult to make an infinite amount of a product and situations often change a perfectly inelastic supply does not change in response to changes in the price that is the price elasticity of supply is equal to 0 here any change in the price of a good or service leads to no change in the quantity supplied the supply curve is vertical for example there's only one of each painting Leonardo DaVinci each piece is all that can be supplied to the market regardless of the price alrighty so let's go back to our power point here is price I'm sorry but I got to stop can we stop this saltzer the next video they're sorry about okay let me go back to a PowerPoint share that with him wrap up here Rebecca purple presentation and right here or is it is it will be just watch the video clip so he's just he's just looked a  suppliers react to the change in price and he's just to explain that to you if that's all they mean by elasticity and he said to the yard when they do the math that use the formula if it's greater than one then it's any last to keep his less than one then it said to be elastic and so there's going to be a disappointing one where the calculation is this weather not the supply will go up or down with the price so that's very important you know you look at the formulas are you in that miss this math you learn all these appointments a math sometimes you've seen your map has a whole you know what are we going to use this math and everything but definitely economics is one of those apps math is River apical in so many different situations even if it's just knowing how to balance your checkbook or your your checking account or savings account Samantha is out there every day and Lively students but definitely economics is one of many examples of where math is applied and so but anyway so that's asleep Supply so you can watch this video to if you want to go back over that video or you can find that something video on being or YouTube or it's going here so remember sometimes something happens to cause a change in Supply which is a situation where supplies are forgiven amounts of a product for sale at Hall Pass price in the market these changes whether an increase or decrease the amount offered to fix individual and market supply curves okay so for independent practice what you need to do is read Section 3 and then at the end of Section 3 complete the three questions section three on page 131 7 questions are make sure you write the questions and then submit that to me and he can either he'd sue me email that to me or you can just write on a piece of paper and leave it with the substitute are you can even turn into me tomorrow when I come to class tomorrow alright alright if any final comments or questions email few questions about the assignment if you have a comment or anything like that know my email is Ian. Smiley at jcsd.net and that will wrap up for a thing for the day Thursday will do that when I come have a good day and hopefully you will continue your continued to comprehend as we study Supply this weekend what that means and I hope that each of you I'll continue to do your work remember you don't want to get too far behind you and make sure you get all your assignments in the Hole by the way to I want to show you on my website for the new people got a couple new people share with y'all this year what's night where's my website here's my website here with economics and see you on my way back on his way to get to this website or School website is www.medicaid.la.gov look at the top menu along the top of the web page click on horses schools sport on our school Richland Academy sweet Ridgeland secondary Academy of Excellence are SAE and then when you get on that you want to scroll down in Tomb in the middle of the web page was the staff directory cook on staff directory and you'll see all the teachers websites and then you check my name is Beast Boy can search by and then we search for my name and they want to do that to get to my website here on the front web page and just remember I go down to the post here at Comics & books on the pool so those have been done that you make sure you finish that and then room we are in chapter 5 now we're looking at Supply so you want to click on chapter 5 fly there and it will give you chapter 5 which is what I was just showing you I'm going to share it with you the the book instead of the PowerPoint in my PowerPoint wouldn't work and so so we already did we get Section 1 of Monday and we did section 2 yesterday looking at 3 production and now we're data Section 3 today who are section 30 best Section 3 section 3 began sx3 P ends right here on page 127 email if you have any more questions or anything and I look forward to seeing you all tomorrow have a good day

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Economics & Personal Finance--Elasticity of Supply (Microeconomics)

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