1. Bell work
What would you sell Freshman that you think you would make a lot of money on?
What would it take to produce that good or service?
How many would you produce and how much would you sell it for?
What factors might affect how many you can produce?

2. Changes in Supply

3. First know this!!!
Quantity Supplied and Supply are two different things!
Quantity Supplied is referring to the amount of supply at a given price
Supply refers to the actual curve itself
Let’s take a look… 30

4. Shifts in the Supply Curve
Change in Supply
A shift of the supply curve, either to the left or right.
Something other then a price change is causing quantity supplied to change at every price
January
May
June-July
At $3 each, I will put 5 mini American flags on my store shelf
The 4th of July holiday is approaching
At $3 each, I will put 100 mini American flags on my store shelf 30

5. What affects supply? Any change in a resource will change supply
Shift it to the left (decrease) or to the right (increase)

6. Lets say you produce these…

7. What would happen to supply if the price of steel went up?
Supply of buses would decrease!
What would happen to supply if the price of steel went up?

8. Change in Input Cost
If input cost goes up, supply decreases (shift to the left)
If input cost goes down, supply increases(shift to the right)

9. Technology and Supply

10. Early 1900’s Assembly Line

11. Today’s Assembly Line

12. Technology and Supply
If technology increases, supply increases (shift to the right)

13. Government’s Influence on Supply
Subsidy
Government payment that supports a business market
Increases supply/shift to the right

14. True Subsidy Story
Tax authorities in the Netherlands agreed to provide an education subsidy to a Dutch woman who was studying and training to be a witch. The woman’s attendance at the 13-weekend witchery program, which cost $3,003, was ruled a legitimate tax-deductible schooling expense by government officials. Students in the program reportedly learned to cast spells, prepare herbs and potions, and to use crystal balls while generally using magic as “a force for good.” The outlay was no small thing -- the cost of the witchery course is higher than that of earning a master’s degree at a Dutch university.

15. Government’s Influence on Supply
Subsidy
Government payment that supports a business market
Increases supply/shift to the right
Excise Taxes
Tax on the production or sale of a good
Decreases supply/shift to the left
Government Regulation
Can increase OR decrease supply

16. Partner Activity In your bell work, please do the following:
Write a specific market at the top (Shoes for example)
Write a scenario that may effect the supply for that market (The price of rubber goes up).
Pass the paper to someone else in the room

17. Partner Activity Read your market and the scenario.
Determine if the scenario would have an effect on the supply curve.
If it does, correctly shift the curve
If it has no effect on the supply curve, than don’t shift the curve
Show the new price and quantity.
Then explain why this happened.

18. Bringing it Back
Each group will read their market and scenario they received.
Every student must write the market and scenario they hear in their notes
Each group will then explain the affect the scenario had on their demand.