1. Supply and Demand Objective: To understand how the supply and demand curve shifts Warm-Up 1)How are the supply schedule and supply curve related? Why does the supply curve slope upward? 2)Draw a graph with both supply and demand curves. Suppose the price of sugar goes up because of a hurricane. What happens to the supply of ice cream? Show the curve shift.

2. Market for Leather Jackets Supply Shifts

3. New Sewing Machines Developed

4. Supply shifts to the right because of a change in technology

5. Leather Manufacture goes out of Business

6. Supply shifts to the left because of a decrease in the number of suppliers/producers

7. Price of Lining Material Rises

8. Supply shifts to the left because of rising input costs

9. Tariffs on Imported Leather Jackets, Impact on Imports

10. Supply shifts left because of a change in government policies

11. Mad Cow Disease Hits US

12. Supply shifts to the left because of a natural disaster, cows will be destroyed, rather than come to the market

13. Shifts in Supply or Demand Curve Draw a correct graph, showing which curve shifted and what happened to price and quantity.

14. Market: Coffee Bountiful crop of Coffee Beans

15. Supply increases, shifts to the right Price falls, quantity increases

16. Market: Automobile Industry Workers in the Automobile Industry receive a pay raise.

17. Supply shifts to the left because of input costs rising Price increases, quantity falls

18. Market: Computer software Price of personal computers fall

19. Demand shifts to the right because of the price of a complement falls Price rises, quantity increases

20. Market: Pepsi Cola Price of Coca Cola rises

21. Demand for Pepsi increases because the price of a substitute good rises price increases, quantity increases

22. Market: Second Hand Clothing National Incomes Rise

23. Demand shifts to the left because the change in income causes a decrease in demand for an inferior good price falls, quantity falls

24. Market: Automobile Industry Government gives GM and Chrysler a subsidy

25. Supply shifts to the right because of a change in government policies price falls, quantity increases

26. Market: Corn Price for irrigation equipment falls

27. Supply increases because of a change in technology price falls, quantity increases

28. Market: Any normal good American’s Income falls 3 months in a row

29. Demand increases because incomes rising and increase in demand for normal goods price falls, quantity decreases

30. Market: TV Manufacturing American TV production closes its manufacturing plant

31. Supply shifts left because of decrease in number of producers in the market price increases, quantity falls

32. Market: Any Inferior Good American’s income rises 3 months is a row

33. Demand decreases because as incomes rise, there is a decrease in demand for inferior goods price falls, quantity falls