Supply and Demand project Step 7: Determinants of Supply (New

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Supply and Demand project

Step 7: Determinants of Supply (New Supply Schedules/Supply Curves)

Using the six determinants of supply (from 4.2), you will create two new supply schedules/supply curves. One of the supply schedules will indicate an increase in demand; one will indicate a decrease in supply

 As a group, select one of the six DoS’s to explain an increase in demand for your project. Draw out another 2-row, 7column demand schedule. Using the same prices as before, indicate demand has increased by increasing each of the quantity-supplied boxes. (Increase each one by the same amount. See the example below) Label this S2 and a one paragraph scenario explaining how supply increased

Price

Quantity

Supplied

$140

900

$160

1000

$180

1100

Trgt. Price

$200

1200

$220

1300

$240

1400

$260

1500

Example: Supply for the fart phone increase because the price of sulfur used to make the smell went down.

 Since you already have your graph drawn, labeled, and incremented; all you have to do is plot the new supply schedule points. After you have drawn in all of the points, connect the dots, creating a NEW demand curve. Label this new demand curve S2.

After you have created your second Supply schedule/Supply curve (showing an INCREASE in supply), its time to create your last supply schedule. This time your new supply schedule/curve will show a DECREASE in demand.

Price

 As a group, select one of the six DoS’s (a different one) to explain a decrease in supply for your project. Draw out another 2-row, 7-column supply schedule. Using the same prices as before, indicate supply has decreased by decreasing each of the quantity supplied boxes. (Increase each one by the same amount. See the example below)

Label this S3 and a one paragraph scenario explaining how supply increased

Quantity

Supplied

$140

1100

$160

1000

$180

900

Trgt. Price

$200

800

$220

700

$240

600

$260

500

Example: Supply for the fart phone decreased because one of the stores in San Leandro stopped selling it.

 Plot the last supply schedule points. After you have drawn in all of the points, connect the dots, creating a NEW demand curve. Label this new supply curve S3.

Your final poster should include the following and will be graded by

Illustration and description- 20 points (based on collaboration, quality of description/image)

Demand Schedules D1, D2, D3-15 points (accurate, instructions followed, labeled)

Demand Curves D1, D2, D3-15 points (accurate, instructions followed, labeled)

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