Supply and Production Conditions

Supplied materials

• Paper and pencil; drawing or spoken answers are welcome.
• Topic notes: Input availability: access to materials or other production resources. Production cost: resources or money used to produce an item. Technology: a method or tool changing how production is done. Supply schedule: quantities sellers offer at different stated prices.
• Original exercise cards: Fictional bakery receives more flour deliveries. / Fictional bakery pays more for flour. / Fictional bakery installs a more efficient mixer. / Fictional table lists quantities offered at three prices. / A fictional workshop’s electricity expense rises. / A fictional workshop changes its manufacturing method. / A fictional schedule relates several prices to offered quantities. / A fictional workshop lacks replacement parts.

Learn the idea

Supply concerns quantities sellers are willing and able to sell at different prices. Production costs, available inputs and technology can affect it. A shortage of inputs can constrain output. The following fictional cases identify a production feature, not a guaranteed prediction about a real market.

Input availability: access to materials or other production resources. Production cost: resources or money used to produce an item. Technology: a method or tool changing how production is done. Supply schedule: quantities sellers offer at different stated prices.

Find the changed production feature: available inputs, cost, method or tool, or quantities offered at several prices. Read the notes and the word cards. You can write, draw or say your answer.

1. Read the four notes. Find the words Input availability, Production cost, Technology, Supply schedule.
2. Find the changed production feature: available inputs, cost, method or tool, or quantities offered at several prices.
3. Read the worked answer. Then try the other cards and explain which words helped you choose.
4. Choose two different examples: one for Input availability and one for Production cost. Explain how their clues differ.

Check your reasoning

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Take it further

New card: “A fictional workshop lacks replacement parts.” Match it with a note, then point to or say the words that helped. Check: The card says: “A fictional workshop lacks replacement parts.” That matches Input availability. Input availability is access to materials or other production resources.

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