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)