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• Supply Curve
• Supply Curve= Marginal Opportunity Costs
• Costs more to make more
• Points represent the cost of producing the unit
• Curve moves up because of diminishing returns
• As Price of good goes up, willing to produce more
• 4 Main Points
• Marginal Cost= each point on the curve
• Total Cost= MC #1 + MC #2 
• Total Revenues=  P x Q
• Producer Surplus (Profits?)
• "Law" of Supply- wages go up and so will production
• false and disproven
• Behavior toward a good changes
• price
• moves along the supply curve
• it's said the quantity supplied changed
• any other factor 
• shifts curve
• ex: any change in input costs
• Expectations matter more for producers
• affect supply by shifting the curve
• prices expected to rise, buy it today
• Technology
• ex: machines, worker skill improvement etc.
• causes movement along supply curve
• Price Elasticity of Supply
• % change in quantity supplied / % change price of this good
• two results
• Relatively Elastic >1
• Relatively Inelastic <1
• Price System is the method for rationing goods