Supply & Demand Curve shifts....

Supply & Demand Curve shifts.... Click here to enter….

Why are people so demanding? What is a supply curve shift? What could cause a demand curve shift? What types of shifts are there? What is supply? Show me a graph! To learn about the topics, click on the word bubble..

What is DEMAND? DEMAND: Demand is the willingness and ability of a consumer to purchase a product. Specifically, it is the amount of goods that people are able to purchase!

What is SUPPLY? Supply: Supply is the willingness and ability of a producer to produce a product. Specifically, it is the amount of goods that businesses put into the market!

What is a supply curve shift? A supply curve shift is the change in supply caused by an outside factor. This outside factor could be: Technological advancement New Resources or loss of resources More or less people in the workforce More companies in the marketplace

What causes a demand curve shift? A demand curve shift is the change in demand caused by an outside factor. This outside factor could be: Income of the consumer Quality of the product Perception on the value of the product Popularity of the product Need for the product

What does it mean? Hey….what is that? S $ Cool…but what about the S? D # That’s the SUPPLY curve…that shows the numbers of goods made… GETIT!! That is a Supply and Demand curve DO YOU: It shows the demand for a good…see, line D? That is demand… Need to see It again

In the same light, demand curves will also MOVE based on an outside event…say, for example, Miguel Cabrera says that his success as a baseball player is a direct result of drinking Gatorade…then the demand for Gatorade will change. S Supply and demand curves will MOVE depending on how an outside event impacts a particular market. For example, if there is a major drought, the supply curve for corn will shift to the left. Look at the graph below to see… D 2 Now, we need to discuss how a supply or a demand curve could change if impacted by an outside force, an EXTERNALITY!!! D S Now that you see how this works…care to try a few on your own? 2 S Nope.. You Bet! D

What does it mean? Hey….what is that? S $ Cool…but what about the S? D # That’s the SUPPLY curve…that shows the numbers of goods made… GETIT!! That is a Supply and Demand curve DO YOU: It shows the demand for a good…see, line D? That is demand… Need to see It again

Supply curve shifts Ford trucks Ice Cream Coffee beans Demand curve shifts Hula Hoops Ice Cream Gasoline Conclusion

Ford Motor Company has recently built a brand new factory in the state of Michigan, what will this do to the supply of Ford products? Based on the following information…what would happen to the supply curve? S Supply Shift RIGHT Supply Shift LEFT D

WRONG!!! TRY AGAIN

YES!!!! Yes, increased factory capacity Would lead to More cars available! S S 2 D Try another one!

Types of supply & demand curve shifts Supply curve shift….RIGHT Supply curve shift….LEFT Demand curve Shift…RIGHT Demand curve Shift…LEFT A supply curve shift to the RIGHT means that there is MORE supply of a particular product A supply curve shift to the LEFT means that there is LESS supply of a particular product A demand curve shift to the right means that there is more demand for a particular product A demand curve shift to the left means that there is LESS demand for a particular product

Ben & Jerry’s Ice Cream company suffered a major setback in the production of ice cream when the factory workers went on strike…. Based on the following information…what would happen to the supply curve? S Supply Shift RIGHT Supply Shift LEFT D

YES!!!! Yes, decreased factory capacity Would lead to Less ice cream available! S 2 S D Try another one!

The Paramount Coffee company of East Lansing lost two of it’s five roasters to a small fire. Based on the following information…what would happen to the supply curve? S Supply Shift RIGHT Supply Shift LEFT D

YES!!!! Yes, decreased roasting capacity Would lead to Less coffee available! S 2 S D Try another one!

Mattell, the leading producers of the world’s hula hoops, just aired a commercial showing Brad Pitt claiming his fitness level is completely based on his use of a hula hoop. What will happen to the demand for hula hoops based on this? Based on the following information…what would happen to the supply curve? S Demand Shift RIGHT Demand Shift LEFT D

The local weather station predicted that over the Fourth of July weekend there would be major heat wave in the state of Michigan Based on the following information…what would happen to the supply curve? S Demand Shift RIGHT Demand Shift LEFT D

On Tuesday of last week, local radio station 97.5 fm, offered gallons of gas at the local gas station for only .97 cents per gallon…what might this do to the demand curve? Based on the following information…what would happen to the supply curve? S Demand Shift RIGHT Demand Shift LEFT D

YES!!!! Yes, public opinion would lead to more demand for Hula hoops ! S D 2 D Try another one!

YES!!!! Yes, a major heat wave would lead to an Increased demand for ice cream! S D 2 D Try another one!

YES!!!! Yes, such a cheap price for gasoline would result in higher demand! S D 2 D Try another one!

WRONG!!! TRY AGAIN

Supply & Demand Curve shifts… • Impacted by outside factors • Can move right or left • a shift identifies how the price of the good might change • - but that is the next lesson…

Supply & Demand Curve shifts....