supply and demand objective: to understand how the supply and demand curve shifts warm-up 1)how are...
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Supply and DemandObjective: To understand how the supply and demand curve shifts
Warm-Up1) How are the supply schedule and supply curve
related? Why does the supply curve slope upward?
2) Draw a graph with both supply and demand curves. Suppose the price of sugar goes up because of a hurricane. What happens to the supply of ice cream? Show the curve shift.
Market for Leather Jackets
Supply Shifts
New Sewing Machines Developed
Supply shifts to the right because of a change in technology
Leather Manufacture goes out of Business
Supply shifts to the left because of a decrease in the number of suppliers/producers
Price of Lining Material Rises
Supply shifts to the left because of rising input costs
Tariffs on Imported Leather Jackets, Impact
on Imports
Supply shifts left because of a change in government policies
Mad Cow Disease Hits US
Supply shifts to the left because of a natural disaster, cows will be destroyed, rather than come to the market
Shifts in Supply or Demand Curve
Draw a correct graph, showing
which curve shifted and what happened
to price and quantity.
Market: Coffee
Bountiful crop of Coffee Beans
Supply increases, shifts to the right
Price falls, quantity increases
Market: Automobile Industry
Workers in the Automobile Industry receive a pay raise.
Supply shifts to the left because of input costs
risingPrice increases, quantity
falls
Market: Computer software
Price of personal computers fall
Demand shifts to the right because of the
price of a complement falls
Price rises, quantity increases
Market: Pepsi Cola
Price of Coca Cola rises
Demand for Pepsi increases because the price of a substitute
good risesprice increases, quantity
increases
Market: Second Hand Clothing
National Incomes Rise
Demand shifts to the left because the change in
income causes a decrease in demand for
an inferior goodprice falls, quantity falls
Market: Automobile Industry
Government gives GM and Chrysler a subsidy
Supply shifts to the right because of a change in
government policiesprice falls, quantity
increases
Market: Corn
Price for irrigation equipment falls
Supply increases because of a change in
technologyprice falls, quantity
increases
Market: Any normal good
American’s Income falls 3 months in a row
Demand increases because incomes rising and increase in demand
for normal goodsprice falls, quantity
decreases
Market: TV Manufacturing
American TV production closes its manufacturing
plant
Supply shifts left because of decrease in number of producers in
the marketprice increases, quantity
falls
Market: Any Inferior Good
American’s income rises 3 months is a row
Demand decreases because as incomes rise,
there is a decrease in demand for inferior
goodsprice falls, quantity falls