CHAPTER 5
DEMAND & SUPPLY
READING GUIDE
NAME:___________________________________
1. What two conditions must buyers meet in order for there to be a demand for a good or service? (page 76)
2. If only the price for a good or service changes, does the demand curve shift? Why or why not? Discuss the
difference between “shifting” the curve and “movement along the curve” (pages79, 81)
3. We will use the acronym “TRIBE” to remember the DEMAND SHIFTERS. These are factors that will cause
the entire demand curve to shift either left (decrease in demand) or right (increase in demand).
Summarize/define/give an example for each of the “TRIBE” factors below (pages 80-82):
 Tastes and Preferences:

Related Goods (Substitute and Complementary Goods):

Income:

Buyers (number of consumers):

Expectations:
4. What two conditions must producers meet for there to be supply of a product (page 83)?
CHAPTER 5
DEMAND & SUPPLY
READING GUIDE
Supply Schedule for _______________
Price
Price
5. Pick a good and create your own Supply Schedule. Explain the relationship between price and quantity
supplied using the Law of Supply.
Quantity Supplied
As price RISES, quantity supplied _______________.
Quantity
As price FALLS, quantity supplied _______________.
6. If only the price for a good or service changes, does the supply curve shift? Why or why not? (page 85)
7. We will use the acronym “OTTERS” to remember the SUPPLY SHIFTERS. These are factors that will cause
the entire supply curve to shift either left (decrease in supply) or right (increase in supply).
Summarize/define/ give an example for each of the “OTTERS” factors below:
 Opportunity cost of alternative production:

Taxes and Subsidies (Government Policy):

Technology:

Expectations of Future Profit:

Resources (Cost of Inputs):

Suppliers (number of producers):