Transcript Supply - Central Magnet School

 Bellringer—Get out a clean sheet of paper and number 1-10.
Title it: “Notebook and Determinants of Demand Quiz”
Each partner pair should retrieve the following from the back
of the room. You have one minute after the bell rings to be
in your seat with the materials.
1 small whiteboard
1 black dry erase marker
1 color (other than black) dry erase marker
Sock eraser
Put these under your desk.
 EQ: Lesson 9 and 10 What is the difference between a
change in demand and a change in quantity demanded
change in supply and a change in quantity supplied?
Be able to graphically apply the determinates of
demand and supply.
 Agenda:
1. Bellringer—Notebook and Determinants of Demand
Quiz
2. Review Demand Determinants
3. Lecture—Supply
4. Practice Problems—Supply
1.
2.
3.
4.
5.
6-10—list the determinants of demand
 Supply—amount of goods for sale
 According to the law of supply, ceteris paribus,
suppliers will offer more of a good at a higher price.
Price
Supply
As price
increases…
Quantity
supplied
increases
Price
Supply
As price
falls…
Quantity
supplied
falls
 Table lists the quantities that suppliers will sell at
various prices.
Supply Schedule
Price per slice of pizza
$.50
Slices supplied per day
1,000
$1.00
1,500
$1.50
$2.00
$2.50
$3.00
2,000
2,500
3,000
3,500
 A graph of the
Supply Curve
supply
schedule
3.00
Supply
Price (in dollars)
2.50
2.00
1.50
1.00
.50
0
0
500
1000
1500
2000 2500 3000 3500
Output (slices per day)
 Change in PRICE
changes quantity
supplied
P
6
 Movement along the
 Change in SUPPLY
shifts the curve,
caused by a change in
the determinants of
supply.
 AGAIN—shift to the
right is an increase,
shift to the left is a
decrease.
S1
5
Price (per bushel)
curve
S3
S2
4
3
2
1
0
2
4
6
8
10
12
14
Quantity Supplied (bushels per week)
Q
An increase
in the price
of cheese
Price of
Pizza
$3.00
S2
S1
2.50
Decrease
in supply
2.00
1.50
1.00
0.50
0 1
2 3 4 5 6 7 8 9 10 11 12
Quantity
Supplied of
Pizza
 Businesses will switch production to whichever good is
more profitable
 If the market price of a similar good increases, supply
will decrease.
 If the market price of a similar good decreases, supply
will increase.
Market price of Pizzones
decreases
S1
Price of
Pizza
$3.00
S2
2.50
2.00
1.50
1.00
Increase
in supply
0.50
0 1
2 3 4 5 6 7 8 9 10 11 12
Quantity
Supplied of
Pizza
The U.S.
Government
requires all school
cafeterias to offer
pizza at breakfast
and lunch
Price of
Pizza
$3.00
S1
S2
2.50
2.00
1.50
1.00
Increase
in supply
0.50
0 1
2 3 4 5 6 7 8 9 10 11 12
Quantity
Supplied of
Pizza
New Oven
speeds up the
pizza making
process
Price of
Pizza
$3.00
S1
S2
2.50
2.00
1.50
1.00
Increase
in supply
0.50
0 1
2 3 4 5 6 7 8 9 10 11 12
Quantity
Supplied of
Pizza
The market price of
pizza is expected to
increase on Saturday.
Price of
Pizza
$3.00
S2
S1
2.50
Decrease
in supply
2.00
1.50
1.00
0.50
0 1
2 3 4 5 6 7 8 9 10 11 12
Quantity
Supplied of
Pizza
Pizza Hut
goes out of
business
Price of
Pizza
S2
$3.00
2.50
S1
Decrease
in supply
2.00
1.50
1.00
0.50
0 1
2 3 4 5 6 7 8 9 10 11 12
Quantity
Supplied of
Pizza
 With a partner, draw a supply curve on the whiteboard.
 Title it “Supply of Foreign and Domestic Cars”
 Make sure that your graph has the Price and Quantity
axes properly labeled and one curve labeled S1.
 You do not need numbers on the graph.
Draw original in black. Draw the new curve for each
problem. There are 2 no SUPPLY SHIFT. They are
demand shifts. Show them.
Auto workers’ union agrees to wage cuts
1. New robot technology increases efficiency
2. National income rises 2%
3. Nationwide auto strike began at midnight
4. New import quotas reduce foreign car imports
5. Cost of steel rises
6. Auto producer goes bankrupt; Closes operation
7. Buyers reject new models

Card #3 Supply
 Draw a demand and supply graph for a product.
 Show an increase in supply in one color and a decrease




in supply in another color. State which color is which
out to the side.
Give an example of what would cause the increase and
what would cause the decrease.
List and briefly explain the 6 determinants of supply.
State the difference b/wn a change in supply and QS.
Due Wednesday
 What is the difference between a change in quantity
supplied and supply? List the 6 determinants of
supply.
 Quick quiz over the determinants of supply tomorrow.
Draw a demand and supply graph for
potatoes.
Points 1-3—1. Draw the graph with both demand and supply curves. Both axes should
be labeled correctly. 2. Draw an increase in supply. Label it S1. 3. Draw a decrease
in supply label it S2.
4. The government passes the new Farm Bill. In it, they increase subsidies
to farmers.
5. There is a new potato reaper that has been invented.
6. The cost of fertilizer has increased. (Assume that potato farmers use
fertilizer.)
7. New diet becomes popular that bans carbs. Potatoes are carbs.
8. Government bans GMOs usage by farmers. GMO=genetically modified
organisms. (P.S. GMOs increase crop yields.)
9. What happens to the equilibrium price when supply increases?
10. What happens to the equilibrium quantity when supply increases?
11. What happens to the equilibrium price when supply decreases?
12. What happens to the equilibrium quantity when supply decreases?
Directions
Get into a group of 4, retrieve 2 posters and 2 colored markers
and a black. Think of 1 product.
2. Create two posters—one supply and one demand
3. Supply poster—one original curve—S, one increase—S1, one
decrease S2
4. Demand poster—one original curve—D, one increase—D1,
one decrease D2
5. Think of 5 different scenarios that would change demand for
your product. One for each determinate. Think of one
scenario that would not change demand. Write them down on
a sheet of paper.
6. Think of 7 different scenarios that would change supply—one
for each and one that wouldn’t shift. Write them down on a
sheet of paper.
Roles—1. Leader—overseer, helps where needed, 1 person draws
the graphs, 2 people think of scenarios
1.