1. 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

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

3. 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

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

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

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

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

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

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

10. 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

11. 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