1. 2.1 Markets Supply Pg 47 Oliver Chang

2. Determinant of Supply Taxes: increases production costs and reduces supply Subsidies: lowers producers’ costs and increases supply Increase in tax= shift of Supply curve to the left Increase in subsidies= shift of Supply curve to right Decrease in tax= shift of Supply curve to right Decrease in subsidies= shift of Supply curve to left

3. Supply and Demand Quantity Demanded and Supplied Price S1S1 S2S2 S3S3 D1D1

4. Questions Taxes and Subsidies shifts the Demand curve True or False? What causes an increase in supply? a) Change in buyer income b) Increase in subsidies c) Increase in the quantity of the product produced at an increased price d) None of the above