Supply Shift Practice warmup: New Cars: Please draw five P/Q axes on whiteboards with Supply curves. Your Product: New Cars. 1. Government eliminates all quotas on foreign made cars (allowing more imported cars into the country) 2. Cost of steel triples! 3. The price of cars is expected to rise in the future. 4. P of cars drops as manufacturers attempt to clear out 2016 models 5. Government raises taxes on all big corporations to force them to pay their “fair share” of the federal debt

Product: New Cars Government eliminates all quotas on foreign made cars (allowing more imported cars into the country) P S1 Q cars

Product: New Cars Government eliminates all quotas on foreign made cars (allowing more imported cars into the country) P S1 S2 ∆ Gov Reg Q cars

Product: New Cars Cost of steel triples! P S1 Q cars

Product: New Cars Cost of steel triples! S2 P S1 ∆ inputs Q cars

Product: New Cars The price of cars is expected to rise in the future. Q cars

Product: New Cars The price of cars is expected to rise in the future Q cars

Product: New Cars P of cars drops as manufacturers attempt to clear out 2016 models P S1 Q cars

Product: New Cars P of cars drops as manufacturers attempt to clear out 2016 models P S1 Q cars

Product: New Cars Government raises taxes on all big corporations to force them to pay their “fair share” of the federal debt P S1 Q cars

Product: New Cars Government raises taxes on all big corporations to force them to pay their “fair share” of the federal debt S2 P S1 ∆ tax Q cars