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Activity Number 3

Lorenzo Oliver T. Rosales had an activity from 8:40-9:40 that involved two tests on the law of supply. The first test stated the law of supply - that the quantity supplied and price have a direct relationship, so higher prices result in greater supply. The second test listed and explained the six determinants of supply: price, number of sellers, resource prices, tax rates/subsidies, technology improvements, and supplier expectations. It also discussed how related product prices and joint product prices can impact supply.

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Raul Rosales
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65 views2 pages

Activity Number 3

Lorenzo Oliver T. Rosales had an activity from 8:40-9:40 that involved two tests on the law of supply. The first test stated the law of supply - that the quantity supplied and price have a direct relationship, so higher prices result in greater supply. The second test listed and explained the six determinants of supply: price, number of sellers, resource prices, tax rates/subsidies, technology improvements, and supplier expectations. It also discussed how related product prices and joint product prices can impact supply.

Uploaded by

Raul Rosales
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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NAME: ROSALES, LORENZO OLIVER T.

TIME: 8:40-9:40

ACTIVITY NO.3 FOR MIDTERM

Test I

GIVEN:

PRICE= 3,6,9,12,15,18,21,24,27,30

QS= 3,6,9,12,15,18,21,24,27,30

STATE THE LAW OF SUPPLY


- The amount supplied and price fluctuations for a product are related by the law of supply. Lower
prices result in a less supply. With all else being equal, lower prices translate into a smaller
supply; the higher the price, the less is produced. In contrast to the law of demand, supply and
price have a direct relationship rather than an inverse one as is the case with commodities.

TEST II
ENUMERATE THE DETERMINANTS OF SUPPLY THEN EXPLAIN EACH
• PRICE
- refers to the primary variable that has the most impact on a product's availability. Contrary to
demand, there is a clear correlation between a product's price and its supply.

• THE NUMBER OF SELLERS IN THE MARKET


- When constructing a supply curve, the willingness and ability to sell a good are taken as
constants. One of the five supply determinants that, when they vary, cause the supply curve to
alter is the number of sellers.

• THE PRICE RESOURCES USED TO PRODUCE THE PRODUCT

-When constructing a supply curve, the prices of the resource inputs that influence production
costs and a good's ability to sell are considered to be constant.
• TAX RATES AND SUBSIDIES
• IMPROVEMENTS IN TECHNOLOGY AND AUTOMATION
- refers to one of the key supply-determining factors. A product's supply grows as a result of
increased production due to better and more sophisticated technologies. For instance, the
manufacturing of high-quality seeds and fertilizers both boost crop productivity. As a result,
there are now more food grains available on the market.

• EXPECTATIONS OF THE SUPPLIERS


- declares that the sellers are prepared to sell additional products at a premium market price for
a certain good. The adage that increases in supply coincide with increases in commodity prices
might help people understand the law.
• THE PRICE OF RELATED PRODUCTS
-One of the other elements influencing demand is the cost of associated goods. a. Related
products are categorized as either complements or alternatives. 1. Goods that fulfill a similar
need or desire are considered substitutes.
• THE PRICE OF JOINT PRODUCTS MADE IN THE SAME PROCESS

- phrase used to describe a good or activity that has two or more outputs. Typical instances can
be found in the livestock sector.

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