1. The difference between
Change in Supply and change in
Quantity Supplied

2. (hundreds of Greebes per week)$8 $7 $6 S $5 b
PRICE per Greebe $4 a $3 $2 $1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
QUANTITY
(hundreds of Greebes per week)

3. A change in price creates
Movement from point a to point b

4. SLIDE Movement from point a to point b
is a slide “on or along” the supply curve,
resulting only from a change in price
This is not a change in supply!!!!!!!!!
only a change in quantity supplied because of a price change

5. Remember “Ceteris Paribus”
Let’s change one of the conditions which we held constant when we established the original supply schedule for Greebes – these variables are referred to as the
non-price determinants of supply

6. A change in the Non-price DETERMINANTS OF SUPPLY
– results in a shift in the Supply Curve
CHANGES THE QUANTITY SUPPLIED AT EACH AND EVERY PRICE

7. What does a Change in Supply look like? A SHIFT or new supply curve

8. (hundreds of Greebes per week)$8 $7 s2 $6 S $5 b
PRICE per Greebe $4 s1 a $3 $2 $1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
QUANTITY
(hundreds of Greebes per week)

9. I told you this would be hard…
Review Time!!!!
I told you this would be hard…

10. Daily
Double

11. Compare 2000 with 2001. Which of the following statements is (are) true?
Year Quantity Sold Price
,000 $10.
,000 $20.
Demand has increased
Quantity demanded has increased
Supply has increased
Quantity supplied has increased
Supply has decreased
A. I only
B. V only
C. I and IV only
D. I and V only
E. I, II and III only

12. Gotcha!
Quantity demanded only increases or decreases by sliding along the demand curve
When there is a change in demand, there is a new quantity demanded at each and every price
The correct answer is C

13. s
Price p d1 d Q
Quantity

14. Non-price Determinants of Supply: Factors that shift the Supply Curve
“ROTTEN”

15. “R” is for resource Changes in resource prices or input costs
Elements of nature and political disruptions

16. Change in Prices of other goods produced and offered for sale
“O” is for other
Change in Prices of other goods produced and offered for sale

17. “T” is for technology
Changes in technology

18. Changes in taxes and subsidies
“T” is for taxes
Changes in taxes and subsidies

19. “E” is for expectations
Change in expected future prices, (producer) expectations

20. “N” is for number Change in the number of suppliers in the market
Elements of nature and political disruptions

21. Non-price DETERMINANTS OF SUPPLY
Changes in resource prices or input costs
Elements of nature and political disruptions
Change in Prices of other goods produced and offered for sale
Changes in technology
Changes in taxes and subsidies
Change in Expected future prices (producer) expectations
Change in the number of suppliers in the market

22. Quick tip
Any factor that increases the cost of production decreases supply
Any factor that decreases the cost of production increases supply