1. Supply Changes in the QUANTITY Supplied vs. Changes in Supply

2. Price of caviar (per pound) Quantity of caviar (millions of pounds) 70 $30 $15 4020 90 $25 $20 $5 $10 $35 8060 5030 10 $40 $45 95 Supply Schedule for Caviar Price of caviar (per pound) Quantity of caviar supplied (millions of pounds) $4080 $3570 $3060 $2550 $2040 $1530 $1020 Supply curve, S Supply Schedule and Supply Curve

3. Price of caviar (per pound) Quantity of caviar (millions of pounds) 70 $30 $15 4020 90 $25 $20 $5 $10 $35 8060 5030 10 $40 $45 95 Supply Schedule for Caviar Price of caviar (per pound) Quantity of caviar supplied (millions of pounds) 20132014 $408090 $357080 $306070 $255060 $204050 $153040 $102030 Supply curve, S in 2013 Supply curve, S in 2014 NOTICE: Price remained CONSTANT, but the quantity supplied changed. That is a change in supply. Supply Curve: Changes in Supply

4. Price of caviar (per pound) Quantity of caviar (millions of pounds) 70 $30 $15 4020 90 $25 $20 $5 $10 $35 8060 5030 10 $40 $45 95 Supply Curve: Changes in Quantity Supplied vs. Changes in Supply Moving along the supply curve (NOTICE: this move CAUSES PRICE TO CHANGE) is simply a change in the quantity supplied. Both price and quantity supplied changed. If the quantity supplied changes, BUT PRICE DOES NOT, this is a change in supply. S1S1 S2S2 A C B

5. Price Quantity Demand Curve: Changes in Demand in General Left shift of the supply curve = decrease in supply Right shift of the supply curve = increase in supply S1S1 S2S2 S3S3 Supply curves are upward sloping