ENDURING UNDERSTANDING

MKT-3
Individuals and firms respond to incentives and face constraints.

LEARNING OBJECTIVE ESSENTIAL KNOWLEDGE
  • MKT-3.C
    a. Define (using graphs as appropriate) the law of supply.
    b. Explain (using graphs as appropriate) the relationship between price and quantity supplied.
  • MKT-3.D
    Explain (using graphs as appropriate) producers’ (sellers’) responses to changes in incentives and technology.
ESSENTIAL KNOWLEDGE
  • MKT-3.C.1
    A change in own-price causes a change in quantity supplied in the same direction and a movement along a supply curve.
  • MKT-3.C.2
    The market supply curve (schedule) is derived from the summation of individual supply curves (schedules). The market supply curve is upward-sloping.
  • MKT-3.D.1
    Changes in the determinants of supply can cause the supply curve to shift.