Bellringer—Get out a clean sheet of paper and number 1-10. Title it: “Notebook and Determinants...
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Bellringer—Get out a clean sheet of paper and number 1-10. Title it: “Notebook and Determinants of Demand Quiz” Each partner pair should retrieve the following from the back of the room. You have one minute after the bell rings to be in your seat with the materials. 1 small whiteboard 1 black dry erase marker 1 color (other than black) dry erase marker Sock eraser Put these under your desk. Monday, August 26, 2013
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Transcript of Bellringer—Get out a clean sheet of paper and number 1-10. Title it: “Notebook and Determinants...
Bellringer—Get out a clean sheet of paper and number 1-10. Title it: “Notebook and Determinants of Demand Quiz”
Each partner pair should retrieve the following from the back of the room. You have one minute after the bell rings to be in your seat with the materials.
1 small whiteboard1 black dry erase marker1 color (other than black) dry erase markerSock eraser
Put these under your desk.
Monday, August 26, 2013
EQ: Lesson 9 and 10 What is the difference between a change in demand and a change in quantity demanded change in supply and a change in quantity supplied? Be able to graphically apply the determinates of demand and supply.
Agenda:1. Bellringer—Notebook and Determinants of
Demand Quiz2. Review Demand Determinants3. Lecture—Supply4. Practice Problems—Supply
Monday, August 26, 2013
1.2. 3. 4. 5. 6-10—list the determinants of demand
Notebook and Determinants of Demand Quiz
Demand Review—B is the original
Price
As price increases…
Supply
Quantity supplied increases
Price
As price falls…
Supply
Quantity supplied
falls
SupplySupply—amount of goods for saleAccording to the law of supply, ceteris
paribus, suppliers will offer more of a good at a higher price.
Table lists the quantities that suppliers will sell at various prices.
Supply Schedule
$.50 1,000
Price per slice of pizza
Slices supplied per day
Supply Schedule
$1.00
1,500
$1.50
2,000$2.0
02,500
$2.50
3,000$3.0
03,500
A graph of the supply schedule
Supply Curve Supply Curve
Pri
ce (
in d
oll
ars
)
Output (slices per day)
3.00
2.50
2.00
1.50
1.00
.50
0
0 500 100
0
150
0
200
0
250
0
300
0
350
0
Supply
Change in PRICE changes quantity suppliedMovement along
the curveChange in SUPPLY
shifts the curve, caused by a change in the determinants of supply.
AGAIN—shift to the right is an increase, shift to the left is a decrease.
Changes in QS vs. Changes in Supply
6
5
4
3
2
1
0
Quantity Supplied (bushels per week)
Pri
ce (
per
bu
shel)
P
Q
S1
S2
S3
2 4 6 8 10 12 14
Resources—Cost of
$3.002.50
2.001.501.00
0.50
21 3 4 5 6 7 8 9 10 1211
Price of
Pizza
Quantity Supplied of Pizza
0
Decreasein supply
An increase
in the price of cheese
S1S2
Businesses will switch production to whichever good is more profitable
If the market price of a similar good increases, supply will decrease.
If the market price of a similar good decreases, supply will increase.
Other Goods
Other Goods
$3.002.50
2.001.501.00
0.50
21 3 4 5 6 7 8 9 10 1211
Price of
Pizza
Quantity Supplied of Pizza
0
Increasein supply
S1 S2
Market price of Pizzones decreases
Taxes--Government
$3.002.50
2.001.501.00
0.50
21 3 4 5 6 7 8 9 10 1211
Price of
Pizza
Quantity Supplied of Pizza
0
Increasein supply
The U.S. Government requires all
school cafeterias to offer pizza at breakfast and
lunchS1 S2
Technology
$3.002.50
2.001.501.00
0.50
21 3 4 5 6 7 8 9 10 1211
Price of
Pizza
Quantity Supplied of Pizza
0
Increasein supply
New Oven speeds up the pizza making
process
S1
S2
Expectations of SUPPLIERS
$3.002.50
2.001.501.00
0.50
21 3 4 5 6 7 8 9 10 1211
Price of
Pizza
Quantity Supplied of Pizza
0
Decreasein supply
The market price of pizza is expected to
increase on Saturday.
S1S2
Number of Suppliers
$3.002.50
2.001.501.00
0.50
21 3 4 5 6 7 8 9 10 1211
Price of
Pizza
Quantity Supplied of Pizza
0
Decreasein supply
Pizza Hut goes out
of business S1S2
With a partner, draw a supply curve on the whiteboard.
Title it “Supply of Foreign and Domestic Cars”
Make sure that your graph has the Price and Quantity axes properly labeled and one curve labeled S1.
You do not need numbers on the graph.
Practice Problems
Draw original in black. Draw the new curve for each problem. There are 2 no SUPPLY SHIFT. They are demand shifts. Show them.
Auto workers’ union agrees to wage cuts1. New robot technology increases efficiency2. National income rises 2%3. Nationwide auto strike began at midnight4. New import quotas reduce foreign car
imports5. Cost of steel rises6. Auto producer goes bankrupt; Closes
operation7. Buyers reject new models
Practice Problems
Card #3 SupplyDraw a demand and supply graph for a
product. Show an increase in supply in one color and a
decrease in supply in another color. State which color is which out to the side.
Give an example of what would cause the increase and what would cause the decrease.
List and briefly explain the 6 determinants of supply.
State the difference b/wn a change in supply and QS.
Due Wednesday
What is the difference between a change in quantity supplied and supply? List the 6 determinants of supply.
Quick quiz over the determinants of supply tomorrow.
Answer the EQ
Draw a demand and supply graph for potatoes. Points 1-3—1. Draw the graph with both demand and supply curves.
Both axes should be labeled correctly. 2. Draw an increase in supply. Label it S1. 3. Draw a decrease in supply label it S2.
4. The government passes the new Farm Bill. In it, they increase subsidies to farmers.
5. There is a new potato reaper that has been invented. 6. The cost of fertilizer has increased. (Assume that potato
farmers use fertilizer.)7. New diet becomes popular that bans carbs. Potatoes are
carbs. 8. Government bans GMOs usage by farmers.
GMO=genetically modified organisms. (P.S. GMOs increase crop yields.)
9. What happens to the equilibrium price when supply increases?
10. What happens to the equilibrium quantity when supply increases?
11. What happens to the equilibrium price when supply decreases?
12. What happens to the equilibrium quantity when supply decreases?
Directions1. Get into a group of 4, retrieve 2 posters and 2
colored markers and a black. Think of 1 product. 2. Create two posters—one supply and one demand3. Supply poster—one original curve—S, one increase—
S1, one decrease S24. Demand poster—one original curve—D, one increase
—D1, one decrease D25. Think of 5 different scenarios that would change
demand for your product. One for each determinate. Think of one scenario that would not change demand. Write them down on a sheet of paper.
6. Think of 7 different scenarios that would change supply—one for each and one that wouldn’t shift. Write them down on a sheet of paper.
Roles—1. Leader—overseer, helps where needed, 1 person draws the graphs, 2 people think of scenarios
