click here to enter….. what is supply? what is a supply curve shift? why are people so demanding?...
TRANSCRIPT
Click hereto enter….
What is supply?
What is a supply
curve shift?
Why are people so
demanding?
What could cause a demand
curve shift?
To learn about thetopics, click on the
word bubble..
Show me a
graph!
What types of shifts are
there?
DEMAND: Demand is the willingness and ability of a consumer to purchase a product.
Supply: Supply is the willingness and ability of a producer to produce a product.
A supply curve shift is the change in supply caused by an outside factor. This outside factor could be:
Technological advancementNew Resources or loss of resourcesMore or less people in the workforceMore companies in the marketplace
A demand curve shift is the change in demand caused by an outside factor. This outside factor could be:
Income of the consumerQuality of the product
Perception on the value of the productPopularity of the product
Need for the product
Hey….what isthat?
That is aSupply and
Demand curve
What doesit mean?
It shows the demand for a
good…see, line D? That is demand…
Cool…but what about
the S?
That’s the SUPPLY curve…that shows
the numbers of goods made…
DO YOU:
GETIT!!
Needto see
It again
Now, we need to discuss how a supply or a demand curve could change if impacted by
an outside force, an EXTERNALITY!!!
Supply and demand curves will MOVE depending on how an outside
event impacts a particular market. For example, if there is a major
drought, the supply curve for corn will shift to the left. Look at the graph
below to see…
In the same light, demand curves will also MOVE based on an outside event…say, for
example, Miguel Cabrera says that his success as a baseball
player is a direct result of drinking Gatorade…then the
demand for Gatorade will change.
Now that you see how this works…
care to try a few on your own?
YouBet!
Nope..
Hey….what isthat?
That is aSupply and
Demand curve
What doesit mean?
It shows the demand for a
good…see, line D? That is demand…
Cool…but what about
the S?
That’s the SUPPLY curve…that shows
the numbers of goods made…
DO YOU:
GETIT!!
Needto see
It again
Supply curve shifts
Demand curve shifts
Ford trucks Ice Cream Coffee beans
GasolineIce CreamHula Hoops
Conclusion
Based on the following
information…what would
happen to the supply curve?
Ford Motor Company has recently built a
brand new factory in the state of Michigan,
what will this do to the supply of Ford
products?
Supply Shift RIGHT
Supply Shift LEFT
Yes, increased factory capacityWould lead to
More cars available!
Demand curveShift…RIGHT
A demand curve shift tothe right means that there
is more demand for a particular product
Demand curveShift…LEFT
A demand curve shift tothe left means that thereis LESS demand for a
particular product
Supply curveshift….RIGHT
A supply curve shift tothe RIGHT means that there
is MORE supply of a particular product
Supply curveshift….LEFT
A supply curve shift tothe LEFT means that there
is LESS supply of a particular product
Based on the following
information…what would
happen to the supply curve?
Ben & Jerry’s Ice Cream company suffered a major setback in the
production of ice cream when the
factory workers went on strike….
Supply Shift RIGHT
Supply Shift LEFT
Yes, decreasedfactory capacityWould lead to
Less icecream available!
Based on the following
information…what would
happen to the supply curve?
The Paramount Coffee company of
East Lansing lost two of it’s five roasters to
a small fire.
Supply Shift RIGHT
Supply Shift LEFT
Yes, decreasedroasting capacity
Would lead toLess coffee available!
Based on the following
information…what would
happen to the supply curve?
Mattell, the leading producers of the world’s hula hoops, just aired a commercial showing Brad Pitt
claiming his fitness level is completely based on his use of a
hula hoop. What will happen to the demand for hula hoops based on this?
Demand Shift RIGHT
Demand Shift LEFT
Based on the following
information…what would
happen to the supply curve?
The local weather station predicted that
over the Fourth of July weekend there would be major heat wave in the state of
Michigan
Demand Shift RIGHT
Demand Shift LEFT
Based on the following
information…what would
happen to the supply curve?
On Tuesday of last week, local radio station 97.5 fm,
offered gallons of gas at the local gas station for only .97
cents per gallon…what might this do to the demand
curve?
Demand Shift RIGHT
Demand Shift LEFT
Yes, public opinionwould lead to
more demand forHula hoops !
Yes, a major heat wavewould lead to an
Increased demandfor ice cream!
Yes, such a cheap pricefor gasoline would
result in higherdemand!
Supply & Demand
Curve shifts…
- Impacted by outside factors- Can move right or left- a shift identifies how the price of the good might change
- - but that is the next lesson…