Naked Economics, Current Reading Writing Assignment / Quiz Review Supply and Demand Interactive Graphs Ceilings and Floors Drawing Supply and Demand curves Article Worksheets Homework Review Powerpoint for next class (online) Read Current Reading Assignment (online) TEST #2 Period 2 – Period 6 – Period 7 –

Who feeds Paris? What motivates these people? What is an example used in Naked Economics Chapter 1? How does this relate to Supply and Demand?

Now draw and label a supply and demand curve on the back.

Review Supply and Demand Draw a supply and demand curve Five Parts

Supply and Demand Price Quantity Demand Supply Equilibrium 5 Parts to a fully labeled Supply and Demand graph 1.Price 2.Quantity 3.Supply 4.Demand 5.Equilibrium

Supply and Demand Now show the effect of an decrease in demand Price Quantity Demand Supply Equilibrium

Supply and Demand Increase shifts the curve to the right (I = R, D = L) and changes the equilibrium (i.e. price and quantity) Price Quantity Demand Supply New Equilibrium

Supply and Demand What was the effect on price? _______ On quantity?_________ Price Quantity Demand Supply New Equilibrium Old Equilibrium

Supply and Demand What was the effect on price? _______ On quantity?_________ Price Quantity Demand Supply New Equilibrium Old Equilibrium

Interactive stuff ter4/sd12.swf ter4/sd12.swf Students demonstrate the impact of changes in demand, supply, and both.

Shortages and Surpluses Price Quantity Demand Supply Equilibrium SURPLUS (excess supply) SHORTAGE (excess demand)

supply and demand curves (a challenging problem) Show the effect on film as result of the increase in supply of memory cards. The key is that Memory Cards and Film are Substitute Goods. You will need to draw two supply and demand curves; one for memory cards and one for film. price quantity Memory CardsFilm

Worksheets Remember..if both curves move, you cannot solve for both price and quantity.

articles Draw a supply and demand curve for each explaining what is going on.

Caps (Ceilings) and Floors (Minimum Prices) Price Quantity Demand Supply Equilibrium Floor (minimum price) Cap (Ceiling)

Minimum Wage Price Quantity Demand (employers Looking for workers) Supply of labor (you and me looking for a job) Equilibrium (Market price)

Minimum Wage So…What is the effect of the Minimum Wage? Price Quantity Demand (employers Looking for workers) Supply of labor (you and me looking for a job) Equilibrium (Market price)

Minimum Wage So…What is the effect of the Minimum Wage? Price Quantity (jobs) Demand (employers Looking for workers) Supply of labor (you and me looking for a job) Equilibrium (Market price)

Minimum Wage So…What is the effect of the Minimum Wage? The quantity of labor demanded (i.e. the number of jobs available) shrinks. Price Quantity Demand (employers Looking for workers) Supply of labor (you and me looking for a job) Equilibrium (Market price)

Minimum Wage Why are some smiling? Why are some frowning? Price Quantity Demand (employers Looking for workers) Supply of labor (you and me looking for a job) Equilibrium (Market price)

Minimum Wage But what if demand for workers is inelastic? Price Quantity Demand (employers Looking for workers) Supply of labor (you and me looking for a job) Equilibrium (Market price)

Minimum Wage But what if demand for workers is elastic? Price Quantity Demand (employers Looking for workers) Supply of labor (you and me looking for a job) Equilibrium (Market price)

THREE MINUTE BREAK countdown/

worksheet

Price per slice Equilibrium Point Finding Equilibrium Price of a slice of pizza Quantity demanded Quantity supplied Result Combined Supply and Demand Schedule $ $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $.50 Slices of pizza per day Supply Demand $2.00 $2.50 $ Surplus from excess supply $ Equilibrium Equilibrium Price a Equilibrium Quantity $ Shortage from excess demand Reading graphs and tables

Reading a Supply and Demand Schedule Combined Supply and Demand Schedule PriceQsQd $ $ $ $ $ $ $ What is the equilibrium price? ____ Quantity? _____

Reading a Supply and Demand Schedule Combined Supply and Demand Schedule PriceQsQd $ $ $ $ $ $ $ What is the equilibrium price? ____ Quantity? _____ Where Qd and Qs are equal.

Reading a Supply and Demand Schedule Combined Supply and Demand Schedule PriceQsQd $ $ $ $ $ $ $ What is the equilibrium price? ____ Quantity? _____ Where Qd and Qs are equal.

Reading a Supply and Demand Schedule Combined Supply and Demand Schedule PriceQsQd $ $ $ $ $ $ $ What is the equilibrium price? $5.00 Quantity? 30 units Where Qd and Qs are equal.

Reading a Supply and Demand Schedule Combined Supply and Demand Schedule PriceQsQd $ $ $ $ $ $ $ What happens is price is $2.00?

Reading a Supply and Demand Schedule Combined Supply and Demand Schedule PriceQsQd $ $ $ $ $ $ $ What happens is price is $2.00? Qd is 45, Qs is 15 and therefore there is a shortage of 30

Reading a Supply and Demand Schedule Combined Supply and Demand Schedule PriceQsQd $ $ $ $ $ $ $ What happens is price is $6.00? Qd is 25, Qs is 35 and therefore there is a surplus of 10

Reading a Supply and Demand Schedule Combined Supply and Demand Schedule PriceQsQd $ $ $ $ $ $ $ Shortage Surplus Equilibrium

Is this an example of a tax, regulation, or subsidy?

HOMEWORK Worksheets Review Powerpoint for next class (online) Read Current Reading Assignment (online)

HANDOUTS (supply and demand t-shirt)