Section 1: Determinants of Supply Directions: On each of the supply graphs provided, move the supply curve to indicate the influence of these statements on the markeT For IPhones.

Section 1: The Market for smartphones The first smartphone originated in 2006 and has consistently grown in popularity in the United States and globally. This first section of this PPT will be based on the market for smartphones.

Step 1: drag the curve in the correct direction Step 2: move the “S” and label it “S1” Step 3: Select the arrow that shows the shift in the correct direction

Input Costs Scenario: Apple sets up factories in China where they can pay a Chinese worker the equivalent of $1.78 and hour, versus an American worker an average of $25 and hour. Chinese workers are also willing to work 60 hour work weeks. Price Place Picture Here S S Quantity Supplied

Input Costs Scenario: Personalized scenario (create your own scenario). Price Place Picture Here S S Quantity Supplied

Technology Scenario: An earthquake destroys the Chinese factories and machines to produce smartphones are left unusable. Price Place Picture Here S S Quantity Supplied

Technology Scenario: Personalized scenario (create your own scenario). Price Place Picture Here S S Quantity Supplied

Subsidies Scenario: The government eliminates subsidy programs. They won’t give Apple tax breaks to produce phones. Price Place Picture Here S S Quantity Supplied

Subsidies Scenario: Personalized scenario (create your own scenario). Price Place Picture Here S S Quantity Supplied

Taxes Scenario: The government gives a tax credit ($100,000) to all U.S. smartphone makers or any domestic production of the smartphone. Price Place Picture Here S S Quantity Supplied

Taxes Scenario: Personalized scenario (create your own scenario). Price Place Picture Here S S Quantity Supplied

Regulation Scenario: The government deregulates the smartphone market by allowing children under 16 (child labor) to work at companies that produce phones. Price Place Picture Here S S Quantity Supplied

Regulation Scenario: Personalized scenario (create your own scenario). Price Place Picture Here S S Quantity Supplied

Producer Expectations Scenario: With the popularity of tablets, smartphones are beginning to lose their relevance. As a result the price of the average phone is expected to drop over the next few years. Many companies are shifting their resources towards tablet production. Price Place Picture Here S S Quantity Supplied

Producer Expectations Scenario: Personalized scenario (create your own scenario). Price Place Picture Here S S Quantity Supplied

Number of Sellers Scenario: After the iPhone’s popularity, many companies such as Samsung, Google and Microsoft have entered the market. How would this affect the supply of smartphones? Price Place Picture Here S S Quantity Supplied

Number of Sellers Scenario: Personalized scenario (create your own scenario). Price Place Picture Here S S Quantity Supplied

Education Scenario: The number of people ages 18-22 attending upper level education in the United States increases, which improves the skills of the current labor force. Price Place Picture Here S S Quantity Supplied

Education Scenario: Personalized scenario (create your own scenario). Price Place Picture Here S S Quantity Supplied

Supply Shock Scenario: A tsunami in Japan floods the automobile factories and reduces the capacity to produce by 50%. Price Place Picture Here S S Quantity Supplied

Supply Shock Scenario: Personalized scenario (create your own scenario). Price Place Picture Here S S Quantity Supplied

Section 2: Supply and Demand Directions: On each of the demand/supply graphs provided, move the demand or supply curve to indicate the influence of these statements on the markeT. Indicate the effect on price and quantity.

The Market For Gasoline Gasoline has become the lifeline for modern economies. For each of the following slides indicate the affect of the scenario on the supply and demand for oil products.

Step 1: drag the curve in the correct direction Step 2: move the dotted lines and label equilibrium Step 3: Place a picture to identify the scenario

The Market for Gasoline There is an increase in the popularity of gas guzzling automobiles. How would this affect the market for oil (gas is a derivative of oil)?. Move curve and arrow in the direction of the shift. Indicate the effect of price on and quantity. Price S Place Picture Here Pe Pe D D Qe Qe Quantity of Oil

The Market for Oil Imagine there is a global recession, which caused people to travel less, will would affect the market for oil (used to create gasoline). Move curve and arrow in the direction of the shift. Indicate the effect of price on and quantity. Price S S Place Picture Here Pe Pe D D Qe Qe Quantity of Oil

The Market for Oil Hydraulic Fracturing (Fracking) leads to the discovery of new oil reserves in the US, which impacts the global market for gasoline. Move curve and arrow in the direction of the shift. Indicate the effect of price on and quantity. Price S S Place Picture Here Pe Pe D D Qe Qe Quantity of Oil

The Market for Oil There is a major oil spill in the Gulf of Mexico, which interrupts the supply of oil to the US. Move curve and arrow in the direction of the shift. Indicate the effect of price on and quantity. Price S S Place Picture Here Pe Pe D D Qe Qe Quantity of Oil

Individual Scenarios Create your own scenario illustrating an increase in demand on the graph below. Price S S Place Picture Here Pe Pe D D Qe Qe Quantity

Individual Scenarios Create your own scenario illustrating a decrease in demand on the graph below. Price S S Place Picture Here Pe Pe D D Qe Qe Quantity

Individual Scenarios Create your own scenario illustrating an increase in supply on the graph below. Price S S Place Picture Here Pe Pe D D Qe Qe Quantity

Individual Scenarios Create your own scenario illustrating a decrease in supply on the graph below. Price S S Place Picture Here Pe Pe D D Qe Qe Quantity

Dieting A new diet has become popular. This diet calls for lots of meat and vegetables, with little or no breads and fruits. Due to this diet, how would each of the following slides be affected?

Dieting Show how the new diet would affect the market demand for meat. Move curve and arrow in the direction of the shift. Indicate the effect of price on and quantity. Price S S Place Picture Here Pe Pe D D Qe Qe Quantity

Dieting Show how the new diet would affect the market demand for bread. Move curve and arrow in the direction of the shift. Indicate the effect of price on and quantity. Price S S Place Picture Here Pe Pe D D Qe Qe Quantity

Dieting Show how the new diet would affect the market demand for fruits. Move curve and arrow in the direction of the shift. Indicate the effect of price on and quantity. Price S S Place Picture Here Pe Pe D D Qe Qe Quantity

Dieting Show how the new diet would affect the market demand for vegetables. Move curve and arrow in the direction of the shift. Indicate the effect of price on and quantity. Price S S Place Picture Here Pe Pe D D Qe Qe Quantity

Section 3: Price Ceilings and Floors Directions: On each of the next slides indicate how the price ceilings or floors affect supply and demand

Price Floor The government imposes a price floor at $9. Because the price is above equilibrium it causes a ____________. Using the formula QS-QD, what is the amount of excess supply? Price Floor

Price Ceiling The government imposes a price ceiling at $3. Because the price is below equilibrium it causes a ____________. Using the formula QS-QD, what is the amount excess demand? ________ Price Ceiling

Price Floor The government imposes a price floor at $7. Because the price is above equilibrium it causes a ____________. Using the formula QS-QD, what is the amount of excess supply? Price Floor

Price Ceiling The government imposes a price ceiling at $2. Because the price is below equilibrium it causes a ____________. Using the formula QS-QD, what is the amount excess demand? ________ Price Ceiling

Price Floor The government imposes a price floor at $10. Because the price is above equilibrium it causes a ____________. Using the formula QS-QD, what is the amount of excess supply? Price Floor

Price Ceiling The government imposes a price ceiling at $5. Because the price is below equilibrium it causes a ____________. Using the formula QS-QD, what is the amount excess demand?________ Price Ceiling