Price

Supply is the quantity of goods and services that producers offer at various possible prices during a given time period. Profit is the key motivation behind suppliers' behavior in providing goods to the marketplace. The supply of goods can be either elastic or inelastic. VIDEO OBJECTIVES - Explain the difference between supply and quantity supplied - Explain what the law of supply states - Explain what supply schedules and supply curves illustrate - Describe supply elasticity

The price system's limitations sometimes lead governments to intervene in the market. Governments may set prices by establishing price ceilings and price floors that are intended to protect producers and consumers from dramatic price swings. Managing prices interferes with the normal interaction between supply and demand, however, and can maintain or even worsen market imbalances. VIDEO OBJECTIVES - Explain why governments sometimes set prices - Explain what governments try to accomplish through price floors, price ceilings, and rationing - Explain what happens when governments manage prices

The determinants of supply are the factors other than price can affect supply of a product over time, shifting the supply curve to the left or right. VIDEO OBJECTIVES - Explain what it means for a product's supply to shift - Identify factors that might cause a product's supply curve to shift - Describe the difference between a tax and a subsidy

A more complex type of business organization is the corporation. It is supervised by a board of directors. Legally, a corporation is treated as if it were an individual. It offers both advantages and disadvantages to the business itself and to the individual stockholders. VIDEO OBJECTIVES - Explain how a corporation is formed - Describe how a corporation is organized - Explain how stocks and bonds differ - Describe the advantages and disadvantages of organizing a corporation

Production decisions are affected by the need of maximize productivity and by the costs of production. When setting production levels, business owners must consider several factors regarding output, as well as the various costs associated with producing goods. VIDEO OBJECTIVES - Explain why producers look at productivity when making supply decisions - Describe how varying the levels of input affects the levels of output - Explain how changes in production costs affect producers' supply decisions

Sole proprietorships is the most common form of business organization. It relies on the work and organizational abilities of one person. VIDEO OBJECTIVES - Describe the advantages of establishing a sole proprietorship - Describe the disadvantages of establishing a sole proprietorship

The price system coordinates production decisions by steering producers and consumers toward market equilibrium. To reach equilibrium, producers must avoid surpluses and shortages frequently through a process of trial and error. A shift in either the demand or the supply curve can change a market's equilibrium point. VIDEO OBJECTIVES - Explain what market equilibrium is - Explain how the price system handles product surpluses and shortages - Explain how shifts in demand and supply affect market equilibrium