Chapter 5 Supply: Revision questions What two requirements of supply must someone meet to be considered a producei'? What does it mean to say that quantity supplied and price has a direct relationship? How does marginal product change during the three stages of production? What is the relationship of total costs to prot? What is the difference between a change in quantity supplied and a change in supply? How do input costs affect supply? How are elastic and inelastic supply different? Between 1997 and 2002, many gold producers cut their budgets for exploring new sources to stay protable when the price of gold was less than $350 per ounce. When the price rose above $400 per ounce in 2004, gold producers were not able to respond quickly to the increase. Use what you know about the elasticity of supply to explain this cause-andeffect relationship. PP'FPPNr' . Explain why it is difcult for orange growers to respond quickly to changes in the price of orange juice? . Both demand and supply for gasoline are inelastic. Would the elasticity of supply and demand be the same for sports cars? Why or why not? 11. Apply formulas you have learned and complete the mble below: Assuming that you sell each product for 22$ 3. What is the prot-maximizing output? b. What is the total revenue at that quantity? c. What is the prot at that quantity? 12. Fill out the following table: Example Headline/ Market Event Changes in Supply (highlight one) Determinants of Supply (ll inthe column) Tennis Balls Farmers think the price of sugar will decrease in 6 months. The government gives subsidies to solar panel manufacturers Tariff on tennis balls reduces the number of manufacturers Aluminum prices ingrease VA