Supply

Check-list  1/ Draw a representation or picture of your fad  2/ Create a demand schedule for your fad  3/ Create a demand curve for your product based on the demand schedule. Include the points for quantity demanded  4/ Explain whether your fad would qualify as a normal or inferior good/service  5/ Describe which of the 5 shifters applies to your fad (can be more than one). Be sure to be able to explain.  (tastes, income, related goods (prices), size of market, and expectations)  6/ List both good/services that compliment your fad, and would act as a substitute  7/ Create the demand curve shifts for 1 complimentary good and 1 substitute good  8/ Decide whether you think that your fad had a positive or negative effect on the economy  1/ Draw a representation or picture of your fad  2/ Create a demand schedule for your fad  3/ Create a demand curve for your product based on the demand schedule. Include the points for quantity demanded  4/ Explain whether your fad would qualify as a normal or inferior good/service  5/ Describe which of the 5 shifters applies to your fad (can be more than one). Be sure to be able to explain.  (tastes, income, related goods (prices), size of market, and expectations)  6/ List both good/services that compliment your fad, and would act as a substitute  7/ Create the demand curve shifts for 1 complimentary good and 1 substitute good  8/ Decide whether you think that your fad had a positive or negative effect on the economy

Fads are Rad  Each group will share what their fad was and its effect on demand  We cannot satisfy demand without a supply  Each group will share what their fad was and its effect on demand  We cannot satisfy demand without a supply

Primary Updates!  Take an article from the front of the room and read it on your own. Answer the questions on the back.  When you are finished, take out the worksheets and note sheet from yesterday   Democrat  Republican  Independent  Take an article from the front of the room and read it on your own. Answer the questions on the back.  When you are finished, take out the worksheets and note sheet from yesterday   Democrat  Republican  Independent

What is Supply?  The amount of a good that a firm is willing to supply when looking at the price.  Quantity Supply: The amount of a good that a firm is willing to supply at a certain price  Supply: The amount of a good that a firm is willing to supply at any price  The amount of a good that a firm is willing to supply when looking at the price.  Quantity Supply: The amount of a good that a firm is willing to supply at a certain price  Supply: The amount of a good that a firm is willing to supply at any price

The Supply Curve  The supply curve slopes upward to the right.  The slope tells us that the quantity supplied varies directly in the same direction – with the price.  The supply curve slopes upward to the right.  The slope tells us that the quantity supplied varies directly in the same direction – with the price.

The Law of Supply  There is a direct relationship between price and quantity supplied.  Quantity supplied rises as price rises, other things constant.  Quantity supplied falls as price falls, other things constant.  There is a direct relationship between price and quantity supplied.  Quantity supplied rises as price rises, other things constant.  Quantity supplied falls as price falls, other things constant.

Practice!  Hourly Wages Worksheet  First portion of the Hot Wings Worksheet  Hourly Wages Worksheet  First portion of the Hot Wings Worksheet

 Changes in price causes changes in quantity supplied represented by a movement along a supply curve.  For Quantity Supplied, we assume all else is equal  Again, one good that will only be affected by price  Changes in price causes changes in quantity supplied represented by a movement along a supply curve.  For Quantity Supplied, we assume all else is equal  Again, one good that will only be affected by price Movements Along a Supply Curve

Change in quantity supplied (a movement along the curve) Change in Quantity Supplied Price (per unit) Quantity supplied (per unit of time) S0S0 $15 A 1,2501,500 B

 If the amount supplied is affected by anything other than a change in price, there will be a shift in supply. Shifts in Supply Versus Movements Along a Supply Curve

Side by Side  Comparing Demand and Supply

Shifters of Supply  Unexpected disasters  Resources (Inputs-change in the price/availability of needed goods and services)  Government Policies (taxes, regulations, subsidies)  Expectations  Number of firms  Technological changes  Unexpected disasters  Resources (Inputs-change in the price/availability of needed goods and services)  Government Policies (taxes, regulations, subsidies)  Expectations  Number of firms  Technological changes URGENTURGENT

Shift in Supply Price (per unit) Quantity supplied (per unit of time) S0S0 Shift in Supply (a shift of the curve) S1S1 $15 AB 1,2501,500

Unexpected Disasters  Natural disasters, weather, and events affect the supply in negative ways  The curve will shift to the left and there will be a lower quantity supplied for each price  Cost of production and resources can increase  Natural disasters, weather, and events affect the supply in negative ways  The curve will shift to the left and there will be a lower quantity supplied for each price  Cost of production and resources can increase

Resources  The price of the resources used to make a product shifts the supply curve  If inputs are less expensive, the curve shifts right  If inputs are more expensive, the curve shifts left  The price of the resources used to make a product shifts the supply curve  If inputs are less expensive, the curve shifts right  If inputs are more expensive, the curve shifts left

Government Policies  Regulations- will shift the curve left, restrictions on production  Taxes- will shift the curve left- less profit per good  Subsidies- will shift the curve right- added benefit to production  Regulations- will shift the curve left, restrictions on production  Taxes- will shift the curve left- less profit per good  Subsidies- will shift the curve right- added benefit to production

Expectations  If suppliers expect prices to rise in the future, they may store today's supply to reap higher profits later.

Number of Firms  The number of firms that produce a good  If the number of firms increases, supply will increase and vice versa  The number of firms that produce a good  If the number of firms increases, supply will increase and vice versa

Technology  Advances in technology reduce the number of inputs needed to produce a given supply of goods.  Costs go down, profits go up, leading to increased supply and shift to the right  Advances in technology reduce the number of inputs needed to produce a given supply of goods.  Costs go down, profits go up, leading to increased supply and shift to the right

Practice! 1.Hot Wings Worksheet 2.Supply Review Sheet 3.Supply Change Worksheet Supply and Demand Packet  Hot Wings Worksheet 2.Supply Review Sheet 3.Supply Change Worksheet Supply and Demand Packet 

HeadlineChangeDraw ItExplain It “New technological breakthrough makes plastic cheaper than ever before” “Government to give all businesses tax breaks” “Gates and Jobs join forces, raise prices for all computers” S2 Technology Taxes No Change Price

“Apple shuts down 100 stores nationwide” “Government raises minimum wage to $10 an hour” “Fire destroys Dell production plant” S2 Number of Suppliers Resources Number of Suppliers