1 Stamp for Assn. 8 (Crossword) What will we learn today? What will we learn today? Standard Monetary and non-monetary incentives and how they change behavior. Standard Relationship between incentives and law of supply and law of demand. Unit: Demand Day 5 Directions: On Day 5 of your Bellwork, answer the following question. You need to write a one paragraph response, so fill out all of Day 5. There should be little to no talking during the Bellwork. Imagine you own a factory that produces sunglasses and that the price of sunglasses beings to rise rapidly. Will you produce: more, less, or the same amount of sunglasses. Why? Mr. Rob wore sunglasses, now everyone wants them!

Assignment 9: 5.1 Understanding Supply 2

Assignment 10: pg. 106, 1 – 6 3

Add to Assignment 10: Supply Curves A small privately owned automobile manufacturer has developed a new hand crafted model called the Topher Limited. Management is studying the possible price of the Topher. The market research department has collected the following data. If the price per car is 65,000, the company is willing to supply 700 cars. At 60,000 the company will supply 600 cars. If the price is 55,000 only 400 cars would be supplied. If the car is 45,000 per car, the company will supply only 300 cars. At 40,000 per car, only 200 Topher’s will be supplied. If the price of a car is 35,000, then the company will supply 100. Anything below 30,000, the company will no longer supply cars. 4

First, make a supply schedule If the price per car is 65,000, the company is willing to supply 700 cars. At 60,000 the company will supply 600 cars. If the price is 55,000 only 400 cars would be supplied. If the car is 45,000 per car, the company will supply only 300 cars. At 40,000 per car, only 200 Topher’s will be supplied. If the price of a car is 35,000, then the company will supply 100. Anything below 30,000, the company will no longer supply cars. 5

Now, make a supply curve If the price per car is 65,000, the company is willing to supply 700 cars. At 60,000 the company will supply 600 cars. If the price is 55,000 only 400 cars would be supplied. If the car is 45,000 per car, the company will supply only 300 cars. At 40,000 per car, only 200 Topher’s will be supplied. If the price of a car is 35,000, then the company will supply 100. Anything below 30,000, the company will no longer supply cars. 6

Make Your Own On a big piece of paper: In pairs (or by yourself), select your favorite product and hypothesize what the suppliers of those products would supply at various prices that they generate (give me six prices). Use that information to make your own supply schedule. Then, generate your own supply curve and be able to explain the rationale behind it to the class. You will be graded: 50% on appearance (have color, look nice, draw a picture of your product), and 50% on accuracy (your lines better look correct). 7