1.  The company that supplies the water in the school vending machine wants to increase their prices. After a short survey, the company created this demand schedule:  Create a demand curve that demonstrates this information. Price of WaterQuantity demanded 1.0025 1.2520 1.5015 1.7510 2.005

3.  The company that supplies the water in the school vending machine created this supply schedule:  Create a supply curve that demonstrates this information.  How is this different than what we learned about quantity demanded? Price of WaterQuantity supplied 1.0020 1.2530 1.5055 1.7570 2.00100

4.  The company that supplies the water in the school vending machine created this supply schedule:  Create a supply curve that demonstrates this information.  How is this different than what we learned about quantity demanded? Price of WaterQuantity supplied 1.0020 1.2530 1.5055 1.7570 2.00100

5.  Students will examine the law of Supply in order to determine how supply effects decision making in the marketplace.Supply

6.  When looking at supply schedules, supply is not necessarily how much sellers will actually sell, but just their willingness to do so.  Ceterus Paribus: keeping all other things constant.

7.  Determinants of Supply › Prices / Costs Of Production › Technology › Taxes / Subsidies › Expectations › Number of sellers  Review the Determinants of Supply and create new examples other than the ones listed in the chart.

8.  Along the curve – change in quantity supplied (change in price)  Of the curve – shift in supply (change in a determinant)  Wrap up: So… › How does supply effect prices in the marketplace?

9.  Students will assess how demand and supply interact in order to determine how prices are fixed in the marketplace.

10. QDPQSMarket Outcome 50050100QD>QS 400150200QD>QS 300200300QD=QS 200300400QD<QS 100500 QD<QS This is a supply and demand schedule for the brand new Playstation 4 that will be released soon. What would this graph look like?

11.  Using the following headline, draw a supply and demand curve.  “Popular Sports Figure Signs Endorsement Deal with Shoe Company” › Does this headline illustrate a change in supply or demand? › Does this headline illustrate an increase or decrease? › What happens to the equilibrium price? › What happens to the equilibrium quantity? Warm up: Thursday 10/17/13

12.  Create a supply and demand curve based on one of the following newspaper headlines: › “Hospitals Report Dramatic Decrease in Births”  How does this affect the market for baby strollers? › “Oil Spill in Gulf of Mexico Hurts Crab Population”  How does this affect the market for steamed crabs? › “President Approves Subsidy for Solar Energy Industry”  How does this affect the market for solar panels?

13.  Changes in the demand and supply of Gasoline