Transcript price!!!!!!
1) 2) 3) Whiteboard, marker, eraser Bellwork Freyonomy Bellwork- Review & Freyonomy Supply Notes pgs. 1-3 Supply Game OUTCOMES Students will identify the relationship between price and supply Students will determine how labor and production costs impact supply Class Average = 80% If you want to avoid a zero your progress report, you MUST makeup tomorrow after school (3:30-4:45) ◦ ◦ ◦ ◦ ◦ ◦ ◦ Davinique Henry- Quiz 1.1- 1.3 &&&& Demand Keyonna C.- Unit 1 Test Millicent Moore- Unit 1 Test Joyri Johnson- Circular Flow portion of Unit 1 M’Kayla M.- Demand Rebecca Turner- Demand Makaila G.- Demand If you want to avoid a zero your progress report, you MUST makeup tomorrow after school (3:30-4:45) ◦ Jalyn Clark- Quiz 1.1 – 1.3 See me for study guide ◦ Desmond Mack- Quiz 1.1 – 1.3 ◦ See me for study guide ◦ Stanley Taylor- Quiz 1.1 – 1.3 ◦ Montavious Singleton- Unit 1 Test &&& Demand ◦ Talia Rowell- Demand ◦ Sha’naya Jones- Demand ◦ Larrion Brack- Demand Starburst sales ◦ Use to learn about Supply and Demand Buying Opportunity for you Price $200 a piece DEFINITION: The willingness and ability of producers to offer goods and services for sale. Law of Supply: Suppliers will normally offer more for sale at high prices and less for sale at lower prices. As price decreases, quantity supplied decreases: P Qs As prices increase, quantity supplied increases: PQs Price and quantity supplied have a direct relationship Shows how much of a good or service an individual producer is willing and able to offer for sale at each price in a market. The Smiths’ Tomato Supply Schedule Price per Pound ($) Quantity Supplied (in pounds) 2.00 50 1.75 40 1.50 34 1.25 30 1.00 24 .75 20 .50 10 Graphic representation of the supply schedule A _________ supply schedule and graph shows how much all tomato producers would be willing to sell their tomatoes at each and every price An ________ supply schedule and graph shows how much Ms. Smith would be willing to sell her tomatoes at each and every price A) B) C) According to the Law of Supply, if Peter produced tennis shoes which were originally sold at $30 a pair, and Target reduced the price of the shoes to $15, Peter would likely Increase the quantity of shoes he supplies Decrease the quantity of shoes he supplies Make no change to the quantity of shoes he supplies A. B. Martha makes cupcakes. If she makes more money for her cupcakes, her quantity of cupcakes supplied will Increase Decrease A. B. Kelly makes candy bars. Normally, Kroger pays her $0.50 per candy bar. When they increase the amount of money she makes to $1.00, the amount of candy bars Kelly supplies will Increase Decrease A change in quantity Price supplied doesn’t shift the supply curve. The change refers to movement along the curve itself. Supply of Bracelets Occurs because of a change in… PRICE!!!!!! • As you move to the right along the curve, the quantity supplied increases. • As you move to the left along the curve, the quantity supplied decreases. Quantity Supplied 1. When the price is $0.75 you supply 20 bracelets. What is the Price new quantity supplied when the price is $1.75? 40 bracelets Supply of Bracelets 2. What caused this change in quantity supplied? Price Quantity Supplied Change in supply occurs when something prompts producers to offer different amounts of sale at every price. ◦ ◦ When production costs increase, supply decreases When production costs decrease, supply increases. A. B. Which of the following graphs shows a change in supply that was caused by something other than price. 1. Input costs- the price of the resources needed to produce a good or service example: nutrition bars that contain peanuts, price of peanuts increases, cost to make nutrition bars increases 2. Labor productivity- the amount of G/S a person can produce in a given time example: better-trained and more-skilled workers can produce more goods in less time 3. Technology- the application of scientific methods and discoveries to the production process, resulting in new products or manufacturing techniques. example: personal computer enables workers to be more productive 4. Government action- taxes, subsides, or regulations can affect production example: excise tax- on alcohol and tobacco, things whose consumption the government is interested in discouraging 5. Producer expectations- expectations of price changes can affect the quantity producers are willing to supply example: a gas station expects the price of gas to be higher in the future, he or she may save some gas to sell later, thereby decreasing supply 6. Number of producers- More producers= reduction in supply. Less producers= increase in supply Example: Mike’s doughnut shop is the only doughnut shop in town. He supplies 1,000 doughnuts a day. If 2 other doughnut shops open, the increased competition might cause Mike to only supply 500 doughnuts a day. 1. A TV factory fires a bunch of workers because they are having financial problems Labor Productivity (Supply Decrease) 4. Ms. Frey has a business selling cookies. She does so well, Mrs. Parrish, Ms. Bruce and Mr. Maple start their own cookie making business. Number of Producers (Supply Decrease) 2. It is the month before Valentine’s Day. Candy producers anticipate that they will receive a higher price 5. In attempt to lower production costs, the government issues a for their goods next month in subsidy, giving $10,000 to February, which leads them to every corn farmer change the amount of candy they supply the month before Valentines Government Action (Supply Day (January) Increase) Producer Expectations (Supply Decrease) 6. A factory gets a new machine that boxes soap more quickly. Technology (Supply Increase) 3. The price of rubber decreases, which affects the production at a local bike shop Input costs (Supply Increase) Which curve demonstrates what would happen to supply if you produced t-shirts and Target decided to put your shirts on sale? (Target decreases the price of your product) A. B. c. D. Which curve demonstrates the change in supply if you produce t-shirts and the price of cotton increased? A. B. c. D. Which curve demonstrates the change in supply if you produce t-shirts and your company got new, more efficient sewing machines? A. B. c. D. Choose 2 supply determinants and illustrate a picture that explains them Above each picture, write the name of the determinant in big letters 1) 2) 3) Whiteboard, marker, eraser Bellwork Freyonomy Bellwork- Review & Freyonomy Supply Current Event Article Supply Notes pgs. 4-5 Elasticity Drawing OUTCOMES Students will identify the relationship between price and supply Students will determine how labor and production costs impact supply If you want to avoid a zero your progress report, you MUST makeup today after school (3:30-4:15) ◦ ◦ ◦ ◦ ◦ ◦ ◦ Davinique Henry- Quiz 1.1- 1.3 &&&& Demand Keyonna C.- Unit 1 Test Millicent Moore- Unit 1 Test Joyri Johnson- Circular Flow portion of Unit 1 M’Kayla M.- Demand Rebecca Turner- Demand Makaila G.- Demand If you want to avoid a zero your progress report, you MUST makeup today after school (3:30-4:15) ◦ ◦ ◦ ◦ ◦ ◦ ◦ ◦ Jalyn Clark- Quiz 1.1 – 1.3 Desmond Mack- Quiz 1.1 – 1.3 See me for study guide Stanley Taylor- Quiz 1.1 – 1.3 Montavious Singleton- Unit 1 Test &&& Demand Talia Rowell- Demand Sha’naya Jones- Demand Larrion Brack- Demand Top 4 Drawings= $200 ◦ ◦ ◦ ◦ Nahana Jocelyn Saleema Talia Starburst sales ◦ Use to learn about Supply and Demand Buying Opportunity for you Price $150 a piece Found a $50 bill on the ground! Need to fix your leaky roof $1,000 Need new tires $700 Rescued Granny’s cat from a tree, as a reward she gave you $20 Your need new work clothes$300 You need new work clothes $100 Nothing! Parking ticket $80 Your heater needs to be repaired $400 Nothing! Need new tires $700 Your car needs maintenance $300 You have bronchitis $150 Which curve demonstrates what would happen to supply if you produced t-shirts and Target decided to put your shirts on sale? (Target decreases the price of your product) Which curve demonstrates the change in supply if you produce t-shirts and the price of cotton increased? Which curve demonstrates the change in supply if you produce t-shirts and your company got new, more efficient sewing machines? Which curve demonstrates what would happen to supply if you produced perfume and Macy’s decided to raise the price, thereby increasing your profits? Which curve demonstrates what would happen to supply if you produced perfume and two other competitors opened up shops nearby? Turn to pg. 4 • Elasticity of supply- measure of how responsive producers are to price changes Inelastic- when a change in price leads to a relatively small change in the quantity supplied. ◦ Producers sell about the same amount, no matter whether the price goes up or down. Ex. Hotel rooms that are sold the night of stay. Typically, a hotel room charge = $150 a night Unsold rooms discount website= $75 a night. Price had little impact on supply because selling rooms for half original price is better than not selling the rooms at all. Elastic- when a change in price causes a relatively large change in the quantity supplied. ◦ The price offered has a strong impact on the amount the seller is willing to sell. ◦ Ex. Shoes It costs a supplier $17 to make shoes. Typically, the supplier sells 100 shoes to Macys, who sells the shoes at $40 a pair. When Macy’s dropped the price of the shoes to $20 the supplier decreased the number of shoes supplied dramatically because he would not make a large profit. Price had a large impact on supply because the supplier could sell to other stores or put them in storage. Inelastic Supply Elastic Supply ◦ Hotel Rooms (the night of) ◦ Shoes ◦ Curve appears vertical ◦ Curve appears horizontal $150 $40 $75 $20 20 30 40 50 10 50 100 Supply could be inelastic for the following reasons ◦ If the product is sensitive to time Price will not impact how much apple farmers sell. Apples expire and farmers need to sell their product. ◦ Firms operating close to full capacity. A cell phone factory is operating at 100% capacity. Even if the cell phone is a best seller and increases in price, the producer cannot increase production because he doesn’t have enough machines, workers, etc. Supply could be elastic for the following reasons ◦ If the product is NOT sensitive to time Unlike apples, canned tuna does not have much of a time constraint for suppliers. If a producer doesn’t like a price, he can store his product and wait for a better price. ◦ Firms operating below full capacity. If a car factory is operating at 70% capacity, then it can easily increase supply and produce more cars in response to changes in price. A celebrity was found wearing clothing from a boutique clothing store. Prices have skyrocketed as the boutique is all the rage, but the store does not have enough materials, workers, and equipment to produce more clothes. Is the supply elastic or inelastic? The price of concert tickets change from $50 to $20 the night of a show. Considering that time is of the essence, is the supply elastic or inelastic? JcPenny decreased the price of necklaces from $20 to $10. Considering that Jewelry can be easily stored, will the jewelry manufacturer respond with elastic or inelastic supply? John owns a battery factory that does not work at full capacity. For instance, he has several unused machines and employees who only work part-time. If John were to receive a higher price for his batteries, would his supply be elastic or inelastic? Bellwork Starburst Sales Supply Notes pg. 5 (bottom) Economics in the Headlines Supply Notes pgs. 6 & 7 Student Volunteers to write on board for bellwork Starburst sales ◦ Use to learn about Supply and Demand Buying Opportunity for you Price $50 a piece Write transaction on week 5 Turn to pg. 5 ◦ Bottom of page Demand Supply Without looking at your notes, draw a supply and demand curve and label them appropriately. Then, draw supply decreasing. Is the green line a supply or demand curve? Which graph shows supply increasing? Which graph shows supply decreasing? Is the red line a supply or demand curve? Which graph shows demand increasing? Which graph shows demand decreasing? Which graph shows what would happen to sales if a book became more popular? Which graph shows what would happen to production at a printing company if an important machine broke?