1. Supply Shifts in the Marketplace Understand how a change in supply and quantity supplied will impact the supply point and supply curve Analyze different situations to determine the change occurring in the marketplace

2. Change in Quantity Supplied vs. Supply Same principles as demand… Change in quantity supplied results in a point change along the supply curve (price change only) –POINT TO ON YOUR SHEET Change in supply results in an entire movement of the supply curve (shift to the right or left along the X-axis) –POINT TO ON YOUR SHEET

3. Change in Supply Shifters Remember S.T.O.R.E.S S=size of market T=technology O=other related goods’ prices R=resource/input prices E=expectations S=subsidies and taxes

4. Size of Market

5. Technology

6. Other Related Goods’ Prices

7. Resource Prices

8. Expectations

9. Subsidies/Taxes

10. Act… With the person next to you: –Grab a whiteboard –Marker –Paper towel eraser We will go through several scenarios in order to better understand possible changes in relation to supply

11. Base Scenario Plot out the following supply schedule for a pack of gum PriceQuantity $12 $34 $56 $78

12. Scenario #1 Following a recent workers strike, the price of labor increases from $7.25 per hour to $8.25 per hour. How will this effect the production of our gum factory, thus the supply it is creating? What is the shifter?

13. Scenario #2 A new type of packaging machine in our factory has been created that allows us to more efficiently package our gum. How will this effect the market’s supply? What is the shifter?

14. Our gum factory manager decides that from now on we will now charge $3 for 4 packs of gum instead of the usual $1 for 2 packs. How will this effect supply? What is the shifter? Scenario #3

15. Scenario #4 After years of debate, the government decides to increase the taxes on gum due to the effects it has on young peoples’ teeth. How does this effect supply? What is the shifter?

16. Scenario #5 All in one year 3 new gum companies emerge in the marketplace. How will this effect supply? What is the shifter?

17. Scenario #6 Following a new report from CNN, people have decided that chewing gum increases your focus and attention span. How will this effect supply? What is the shifter?

18. Scenario #7 A new company has just released a product that is a sugar-free, zero-calorie alternative to gum, that only costs 50 cents for 2 packs of gum. How will this effect supply? What is the shifter?

19. Act… Now, take what you have learned and complete the sheet on shifts in supply H.W. if not completed