This document provides an overview of key concepts around supply, including factors that can shift the supply curve such as changes in natural conditions, technology, government policies, and input prices. It includes sample questions about how these factors would affect supply curves for different goods. There are also sections on current events articles and poll results on common struggles with supply and demand concepts. The document emphasizes the importance of carefully reading questions and remembering what causes a supply curve to shift versus move along the curve. It proposes completing worksheets to practice these skills in preparation for an upcoming quiz.

1. SUPPLY
(Part 2)

2. CHAT REVIEW
You will be presented with
4 questions.
Turn to your “table buddy” and
chat about the answers to these
questions for 1-2 minutes each.

3. ONE.
Why do you think
producers are willing to
supply more goods at high
prices than at low prices?

4. TWO. If a region
experiences flooding,
what industries
might be affected?
What happens to
the amount of goods
supplied by those
industries?

5. THREE.
All the supplies &
resources needed to
produce a finished good,
including the equipment
and labor.
When the price of “inputs”
to production rise, producers
supply fewer goods overall.
Why do you think this true?

6. FOUR.
Name as many inputs in
the production of this shoe
as you can:

7. RECALL: SHIFTS IN SUPPLY
ONLY changes in price result in movement
along the supply curve. Changes in other
factors can actually SHIFT the supply curve.
• Change in natural conditions
!
• Change in technology
!
• Change government policies
!
• Price of a key input to production
changes

8. PRACTICE QUESTION #1:
Terry’s T-Shirt CO. decides to lower
the price of T-Shirts by 1$. Which
graph below represents this situation?
S2 P1
S1
P2
A. B.

9. PRACTICE QUESTION #2:
The price of
fertilizer becomes
more expensive.
How does this
affect the supply
curve for apples?
P (of apples) QS (of apples)

10. PRACTICE QUESTION #3:
The government
increases taxes on
paper, an input in
the production of
books. How does
this affect the supply
curve for books?
P (of books)
QS (of books)

11. PRACTICE QUESTION #4:
products)
The invention of the
cotton gin means
cotton that cotton pickers
of (P no longer have to
QS (of cotton products)
clean cotton by hand.
How does this affect
the supply curve for
cotton products?

12. CURRENT EVENTS:
HOMEPLUS LEAVING KOREA?
Read the following article, and draw a supply graph
that represents the situation.
!
See if you can identify which factor is causing the shift.

14. CURRENT EVENTS:
HOMEPLUS SCANDAL
Read the following article, and draw a demand graph
that represents the situation.
!
See if you can identify which factor is causing the shift.

16. POLL RESULTS:
Question: what are you struggling with the most in the
supply & demand unit?
• Not reading carefully: 7
• Supply: 2
• Shift vs. movement: 1
• Normal/inferior goods: 1

17. How to successfully answer supply and demand problems:
READING CAREFULLY
&
REMEMBERING WHAT
CAUSES MOVEMENT
AND SHIFTS

18. How to successfully answer supply and demand problems:
TASK #1:
Complete the “reading carefully” worksheet & discuss
TASK #2:
Complete the “resource sheet” worksheet to help you prepare for
a quiz next tuesday/wednesday.