DemandThe desire to buy and the ability to pay for a good or service.
SupplyThe desire and ability to produce and sell a product or service.
Morel Mushrooms Grow in wild, nearly impossible to farm.Found in the Spring, near dead deciduous trees
Kimmie• Outdoorsy• Full-time Mom and
hairstlyist • Part-time Morel Hunter
Supply Schedule
Price Qty Supplied
$2/lb
$10/lb
$20/lb 200
$30/lb
$50/lb
Price Qty Supplied
$2/lb
$10/lb
$20/lb 200
$30/lb
$50/lb
Morel Mushrooms
Q
P
0
0
D1
Supply ScheduleSupply Curve
Morel Mushrooms
Q
P
0
0
D1 The Law of Supply
As Prices Rise…
Quantity Supplied
Rises
Morel Mushrooms
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0
0
D1 The Law of Supply
As Prices Fall…
Quantity Supplied
Falls
Objective: Learn about what factors affect supply
Guess what!?!You own a Juice Stop
now! Yay!
Fruit Smoothies
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P
0
0
D1
S
P1
Q1
What happens if the price of Fruit Smoothies goes up?Quantity increases!This is called a change in quantity supplied.
Fruit Smoothies
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0
D1
S
P1
Q1
Change in Quantity Supplied
ΔQS Movement along the
supply curve because of a price
change.
Fruit Smoothies
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0
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D1
S
P1
Q1
Thinking of the entire Fruit Smoothie industry in Lincoln, NE…
What factors affect the supply of Fruit
Smoothies?(other than price)
Fruit Smoothies
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D1
S
P1
Q1
Change in Supply
ΔSA shift of the supply
curve. Happens when something changes in the marketplace
Fruit Smoothies
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0
0
D1
S
P1
Q1
Input CostsThe resources needed to produce a good or service.
Fruit Smoothies
Q
P
0
0
D1
S
P1
Q1
Labor ProductivityThe amount of goods or services that a person can produce in a given time.
Fruit Smoothies
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P
0
0
D1
S
P1
Q1
TechnologyApplying scientific methods and innovation to production
Fruit Smoothies
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0
D1
S
P1
Q1
Government ActionRegulation: A set of rules or laws designed to control business behavior
Put away the
pineapple, chump.
Government ActionExcise Tax: A tax on the making or selling of certain goods or services
That banana shake is gonna
cost you, chump.
Fruit Smoothies
Q
P
0
0
D1
S
P1
Q1
Fruit Smoothies
Q
P
0
0
D1
S
P1
Q1
Producer ExpectationsExample: High school basketball championships
Fruit Smoothies
Q
P
0
0
D1
S
P1
Q1
Number of ProducersExample: High school basketball championships