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Supply

Supply. Supply – the amount of good and services that sellers are willing and able to sell all prices. The Law of Supply. Law of Supply – the higher the price offered, the larger the quantity produced by the supplier; the lower prices offered, the lower quantity supplied

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Supply

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  1. Supply • Supply – the amount of good and services that sellers are willing and able to sell all prices

  2. The Law of Supply • Law of Supply – the higher the price offered, the larger the quantity produced by the supplier; the lower prices offered, the lower quantity supplied • Producers want to sell more at a higher price PriceAs Prices Increase SupplyQuantity Supplied Increases Price AsPrices Fall Supply Quantity Supplied Falls

  3. The Supply Schedule and Curve • Supply Schedule - the table of the total amount consumers are willing and able to sell at all prices at a specific point in time. • Supply Curve - A graphic representation of the individual or market supply schedule

  4. Price per slice of pizza $3.00 2.50 2.00 1.50 1.00 0.50 0 100 150 200 250 300 350 Quantity Supplied of Slices of Pizza The Supply Schedule and Curve

  5. Price 8 6 6 8 Quantity • The Supply Curve is always upward sloping, because as the Price goes up people want to sell more.

  6. What Causes Shifts in the Supply Curve? • The supply curve will NEVER shift if it is just due to PRICE. • When price changes, it is only a change along the curve, up and down, and only the quantity supplied will change with the new price.

  7. Why does the supply curve shift?TIGERS

  8. Price Quantity What does a shift in supply look like? Increase Supply

  9. Price Quantity What does a shift in supply look like? Decrease Supply

  10. Let’s Practice!These are NOT in your packet!Follow along on the Smart board! P Q With Whiteboards! Oooooooh!

  11. Record Strawberry Season – Price Highest in Two Decades!How will this information likely affect the supply of strawberry short cakes? • On your whiteboard, Draw your Base Graph • Now, read the Headline AND corresponding question. • Think about TIGERS • Will it cause an increase or decrease in Supply? • Which shifter? • Show this on your graph by drawing a NEW supply curve… Don’t forget about IRDL! P Q _____ in Supply in _____________________ Cost of Inputs

  12. Price Quantity Nike Opening 100 Factories WorldwideHow will this information likely affect the supply of Nike shoes? Nike Shoes ______ in Supply in ________________________ # of Suppliers

  13. Price Quantity Hollister Announces Decrease in Price on all HoodiesHow will this information likely affect the supply of Hollister’s hoodies? Hoodies Quantity Supplied ______ in Supply in ________________________ PRICE

  14. Price Quantity Government Passes Tax on Cartons of CigarettesHow will this information likely affect the supply of cigarettes? Cigarettes ______ in Supply in ________________________ Government Policy (Excise Tax)

  15. Price Quantity Congress Approves Subsidy for Midwest Corn FarmersHow will this information likely affect the supply of corn? Corn ______ in Supply in ________________________ Government Policy (Subsidy)

  16. Price Quantity Apple Introduces the Gadget Pro 1400 that Speeds up iPad ProductionHow will this information likely affect the supply of Apple iPads? Apple iPads ______ in Supply in ________________________ Technology

  17. Price Quantity Analysts Predict American Airlines Flight Tickets to Increase in the Year 2013How will this information likely affect the supply of airline tickets? Airline Tickets ______ in Supply in ________________________ Producer Expectations

  18. SUPPLY HEADLINES #1 Individual In-Class Practice

  19. Let’s Go Over… SUPPLY HEADLINES Independent In-Class Practice Make sure you make answers are correct in your packet!

  20. Price Quantity Headline ARecord Peach Harvest – Price Lowest in a DecadeHow will this information likely affect the supply curve for frozen peach pies? Frozen Peach Pies ______ in Supply in ________________________ Cost of Inputs

  21. Price Quantity Headline BU.S. Car Company to Close Six FactoriesHow will this information likely affect the supply curve for the company’s minivans? Minivans ______ in Supply in ________________________ # of Suppliers

  22. Price Quantity Headline CShoe Manufacturer Increases Prices on All StylesHow will this information likely affect the supply curve for the company’s sneakers? Sneakers Quantity Supplied ______ in Supply in ________________________ PRICE

  23. Price Quantity Headline DGas Prices to Stay Low this Year – Rise Dramatically Next YearHow will this information likely affect the supply curve for gasoline? Gasoline ______ in Supply in ________________________ Producer Expectations

  24. Price Quantity Headline ERobots Make Automobile Assembly Faster, CheaperHow will this information likely affect the supply curve for cars? Cars ______ in Supply in ________________________ Technology

  25. Price Quantity Headline FCongress Passes New “Sugar Tax”How will this information likely affect the supply curve for sugar? Sugar ______ in Supply in ________________________ Government Policy (Excise Tax)

  26. Price Quantity Headline GPresident Approves Subsidy for Solar Energy IndustryHow will this information likely affect the supply curve for solar energy panels? Solar Energy Panels ______ in Supply in ________________________ Government Policy (Subsidy)

  27. Review Supply Homework Questions

  28. Price Quantity Headline AAdidas Closing 100 Stores NationwideHow will this information likely affect the supply curve for Adidas Shoes? Addidas Shoes ______ in Supply in ________________________ # of Producers

  29. Price Quantity Headline BGap Announces Increase in Price on all JeanHow will this information likely affect the supply curve for the company’s skinny jeans? Gap Skinny Jeans Quantity Supplied ______ in Supply in ________________________ PRICE

  30. Price Quantity Headline CRecord Apple Season – Price Lowest in Two Decades?How will this information likely affect the supply curve for apple pies? Apple Pies ______ in Supply in ________________________ Cost of Inputs

  31. Price Quantity Headline DJersey Shore’s Snooki is Upset – Congress Passes Tax on Tanning BedsHow will this information likely affect the supply curve for tanning beds? Tanning Beds ______ in Supply in ________________________ Government Policy (Excise Tax)

  32. Price Quantity Headline EPresident Obama Approves Subsidy to Help Mama Murray’s Pizza ShopHow will this information likely affect the supply curve for pizza from Mama Bench’s? Mama Murray’s Pizza ______ in Supply in ________________________ Government Policy (Subsidy)

  33. Price Quantity Headline FT-900 Machine Makes Toothpaste Tubes Faster & Cheaper!How will this information likely affect the supply curve for toothpaste? Toothpaste ______ in Supply in ________________________ Technology

  34. Price Quantity Headline GSoftball Bat Prices to Decrease DramaticallyHow will this information likely affect the supply curve for softball bats? Softball Bats Quantity Supplied ______ in Supply in ________________________ PRICE

  35. PRICE As prices go up… SUPLY quantity supplied goes up SUPPLY quantity supplied goes down. PRICE As price goes down… Let’s Review • Law of Supply

  36. Let’s ReviewWhat’s this…? Supply

  37. Supply What does a change in Quantity Supplied look like? • Movement along a supply curve shows a change in quantity supplied • For example: • Movement from point A to B • ONLY CAUSED BY PRICE B A

  38. What Causes a Shift in Supply? • Change in Technology • Change in Cost of Inputs (FoPs) • Change in Government Policy (Subsidy) • Change in Producer Expectations of the future • Change Government Policy (Regulations & Taxes) • Changes in the Number of Suppliers

  39. Original Supply Curve S3 S2 S1 Price Increase in Supply Decrease in Supply Quantity What does a shift in supply look like? • Shift from S1 to S2 is an increase in supply • More supplied at each price • Shift from S1 to S3 is a decrease in supply • Less supplied at each price

  40. What is the most confusing part of supply?

  41. Pop Quiz! Whaaaaat?

  42. Stations • For each of the following problems, state which curve would shift: the supply curve or the demand curve. • Then state whether the curve would shift to the right (an increase in supply or demand), or shift to the left (a decrease in supply or demand). • (Hint: Beware of two trick questions!)

  43. CURRENT EVENTS

  44. On your POST IT…. • Write your NAME • ON THE FRONT: • Name ALL Demand and Supply Factors • ON THE BACK • Explain the LAW of DEMAND and LAW OF SUPPLY

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