1. S&D: Supply Shifts Price
What is the EQ 1 price?
Is demand increasing or decreasing?
What is the EQ 2 price?
Read the information on Market Forces Lead to Equilibrium Price and Quantity on p Refer to Figure 6.1 on p.165.

2. Remember: Determinants of Supply
Change in price of resources
Change in price of another good that could be made w/same resources
Change in technology
Growth in producer’s expectations
Change in # of competitors

3. Supply Shifts for Pizza
EQ price?
Price for pepperoni increases, what will happen to the supply of pizzas?
New EQ price?

4. How supply shifts affect PRICE
If increase in S =
Price will fall
If decrease in S =
Price will rise

5. If new ovens allow me to cook pizza faster, what will happen to the supply of pizza? What will happen to the price of pizza?