Work through the list without notes. If you cannot do a statement, follow its link, then come back. Guide = study guide; Practice = practice questions.
Understanding
- I can state the law of supply and say why the supply curve slopes upward. (Guide: “The law of supply”; Practice Q1, Q7(e))
- I can explain the difference between quantity supplied and supply. (Guide: “What supply means”)
- I can tell a change in quantity supplied from a change in supply, and say which one a change in the good’s own price causes. (Guide: “Change in quantity supplied v. change in supply”; Practice Q2, Q6(e))
- I can list the determinants of supply and give the direction each one shifts the curve. (Guide: “Determinants of supply”; Practice Q3)
Skills
- I can build a market supply schedule by adding producers’ quantities at each price. (Guide: Worked example 1; Practice Q5(a))
- I can calculate a change in quantity supplied from a schedule or a supply equation. (Practice Q2, Q5(b), Q7(a))
- I can draw a supply graph with price on the vertical axis, quantity on the horizontal axis and every curve labelled. (Guide: Figure 1; Practice Q6(a))
- I can show an increase or a decrease in supply on a graph with a labelled new curve and an arrow. (Guide: Figure 2; Practice Q6(b))
- I can work out a new supply schedule after a per-unit tax or subsidy. (Guide: Worked example 2 uses the same method for a cost rise; Practice Q7(b)–(d))
Reasoning
- I can explain how a change in input prices, technology or the number of sellers shifts supply. (Guide: Worked examples 2 and 3; Practice Q5(c), Q6(c))
- I can explain how a change in the price of an alternative product, or in producers’ expectations, shifts current supply. (Guide: Worked example 3; Practice Q4, Q6(d))
- I can explain why a change in demand does not shift the supply curve. (Guide: Worked example 3(f); Practice Q3(D), Q6(e))
All ticked? Move on to Topic 1.6, Market Equilibrium, Disequilibrium, and Changes in Equilibrium, or return to the course roadmap.