1. Supply 1

2. 5 Shifters of Supply 2 Subsidies It is government payment to support business or market. Subsidies cause the supply of a good to increase. 1.Input Prices 2.Technology 3.Expectations 4.Taxes & Subsidies 5.Number of Sellers Changes in PRICE Stay on the Line

3. Input Prices 3 Input Price  Q.S.

4. Technology 4 Technology  Q.S.

5. Expectations 5 Expect Price  Q.S. (now)

6. Taxes & Subsidies Taxes  Q.S. Subsidy  Q.S.

7. Number of Sellers 7 # of Sellers  Q.S.

8. If gas price goes from $4.99 down to $2.05, what is going to happen to the gas supply? 8 Price Quantity S

9. Shift in Supply 9 Price Quantity Price Quantity Increase in Supply Decrease in Supply S S S S

10. Supply Practice First, identify the determinant (shifter) then decide if supply will increase or decrease 10 Shifter Increase or Decrease Left or Right 1 2 3 4 5 6

11. Supply Practice Hamburgers 1.Mad cow disease kills 20% of cows 2.Price of hamburgers increase 30% 3.Government taxes burger producers 4.Restaurants can produce burgers and/or tacos. A demand increase causes the price for tacos to increase 500% 5.New bun baking technology cuts production time in half 6.Minimum wage increases to $20 1.Which Determinant (shifter)? 2.Increase Or Decrease? 3.Which Direction Will Curve Shift? 11