Picture Is Worth A Thousand Words: Supply -- (H) ECON Slides

Picture Is Worth A Thousand Words: Supply

​LEFF YCHS 24/25

Supply curves show the relationship between price (y-axis) and quantity supplied (x-axis).

What Is A Supply Curve?

Finding tick mark numbers:
Price axis (P) = highest price value/number of tick marks

Quantity axis (Q) = highest quantity value/the number of tick marks

How To Graph A Supply Curve

Most Importantly:
If the equation results in a decimal, we always round up to the next highest whole number.
- EX: 42/10 = 4.2 -----> Count by 5's

If the equation results in a whole number, leave it as is.
- EX: 35/5 = -----> Count by 7s

How To Graph A Supply Curve

​STEP 1: Find the highest number on the price axis.

STEP 2: Count the number of tick marks on the price axis.

STEP 3: Divide the highest price value by the # of tick marks.

STEP 4: Find the highest number on the quantity axis.

STEP 5: Count the number of tick marks on the quantity axis.

STEP 6: Divide the highest quantity value by the # of tick marks.

Dropdown

Using the provided table, calculate the tick mark values for the price axis and the quantity axis.



On the price axis, we count by​

Select answer

.

On the quantity axis, we count by​​

Select answer

.

Time to practice graphing supply curves!

Open to page three in your packet and wait for further instruction.

Open Ended

Imagine you are a wheat supplier in the market. The price of your good increased from $3.00 to $6.00. How will your supply change?

​$8.50

​$2.75

​70

​28

Your Wheat Market

Dropdown

The Law Of Supply:

As price​ increases, quantity supplied​

Select answer

.

As price​

Select answer

, quantity supplied​ decreases.

As price increases, quantity supplied increases.

As price decreases, quantity supplied decreases.

The Law Of Supply

P , Qs

P , Qs

The Law Of Supply

​A change in quantity supplied occurs when you move along the curve.

*Caused by the four determinants of supply*

Change In Quantity Supplied

​A change in supply occurs when the entire supply curve moves.

*Caused by a change in price*

Change In Supply

​$10

​$20

​13

​36

Determinants Of Supply

​Determinants are variables that shift the supply curve (price does not shift the curve).

Open Ended

Why would a change in price not shift the supply curve?

​The cost of producing a good or service (typically based on fluctuating resource prices)

Input Prices

Implementation of new technology into the production of a good or service

Can NEVER decrease supply

Technology

​Expectations of consumer behavior alter the amount of a good or service supplied at a given time

​​Expectations

The number of sellers in a specific market

​​Number Of Sellers

​The Four Determinants Of Supply

Drag and Drop

Match the determinant of supply with the correct scenario:



Chicken prices are expected to drop next week due to a salmonella outbreak:​

Placeholder

A new saw helps cut wood faster:​

Placeholder

The US lifts tariffs on imported cars:​

Placeholder

Flour is four times more expensive:​

Placeholder

Drag these tiles and drop them in the correct blank above

expectations

technology

number of sellers

input prices

Multiple Choice

What will happen to the supply of skateboards when lumber (wood) prices significantly decrease?

• Increase

• Decrease

• No change

Multiple Choice

A toothpaste company installed a new machine that triples productivity. What would happen to the supply of toothpaste?

• Increase

• Decrease

• No change

Multiple Choice

This week, you can sell each candy bar at $1. Next week, you can sell each candy bar at $10. What would you do to your supply of candy bars this week?

• Increase

• Decrease

• No change

Multiple Choice

A tax was lifted off the selling of dairy in California. There is a massive influx of dairy suppliers shipping to California now.

• Increase

• Decrease

• No change

​A shift to the right signals an increase in supply.

Increase In Supply

​A shift to the left signals a decrease in supply.

Decrease In Supply

​Time To Shift Some Curves!

Remember back to the law of supply. If there is a price change, we move along the original supply curve. This would result in "no shift". To answer problems like this, simply write "no shift" next to the graph and move on.

What happens if price is the only thing changing?

Draw

Supply of oranges when there is a rumored price decrease next month.

Multiple Choice

Supply of oranges when there is a rumored price decrease next month. What determinant shifted the curve?

• Input prices

• technology

• expectations

• number of sellers

Draw

Supply of footballs when the cost of rubber increases. 

Multiple Choice

Supply of footballs when the cost of rubber increases. 

• Input prices

• technology

• input prices

• number of sellers

Draw

Supply of milk when a machine helps milk cows 3x faster.

Multiple Choice

Supply of milk when a machine helps milk cows 3x faster.

• input prices

• technology

• expectations

• number of sellers

Draw

Supply of tacos when the price increased from $2 to $4.

Draw

Supply of computers when a law forces all manufacturers to produce computers. 

Multiple Choice

Supply of computers when a law forces all manufacturers to produce computers. 

• input prices

• technology

• expectations

• number of sellers