Supply & Demand Curve shifts.... - PowerPoint Presentation

Slide1

Supply & DemandCurve shifts....

Click here

to enter….

Slide2

What is supply?

What is a supply curve shift?

Why are people so demanding?

What could cause a demand curve shift?

To learn about the

topics, click on the

word bubble..

Show me a graph!

What types of shifts are there?

Slide3

What is DEMAND?

DEMAND: Demand is the willingness and

ability of a consumer to purchase

a product.

Specifically, it is the amount of goods that people are able to purchase!

Slide4

What is SUPPLY?

Supply: Supply is the willingness and

ability of a producer to produce

a product.

Specifically, it is the amount of goods that businesses put into the market!

Slide5

What is a supply curve shift?

A supply curve shift is the change in supply caused

by an outside factor. This outside factor could be:

Technological advancement

New Resources or loss of resources

More or less people in the workforceMore companies in the marketplace

Slide6

What causes a demand curve shift?

A demand curve shift is the change in demand caused

by an outside factor. This outside factor could be:

Income of the consumer

Quality of the product

Perception on the value of the productPopularity of the product

Need for the product

Slide7

$

#

D

S

Hey….what is

that?

That is a

Supply and

Demand curve

What does

it mean?

It shows the demand for a good…see, line D? That is demand…

Cool…but what about the S?

That’s the SUPPLY curve…that shows the numbers of goods made…

DO YOU:

GET

IT!!

Need

to see

It again

Slide8

Now, we need to discuss how a supply or a demand curve could change if impacted by an outside force, an EXTERNALITY!!!

Supply and demand curves will MOVE depending on how an outside event impacts a particular market. For example, if there is a major drought, the supply curve for corn will shift to the left. Look at the graph below to see…

D

S

S

2

In the same light, demand curves will also MOVE based on an outside event…say, for example, Miguel Cabrera says that his success as a baseball player is a direct result of drinking Gatorade…then the demand for Gatorade will change.

S

D

D

2

Now that you see how this works…care to try a few on your own?

You

Bet!

Nope..

Slide9

$

#

D

S

Hey….what is

that?

That is a

Supply and

Demand curve

What does

it mean?

It shows the demand for a good…see, line D? That is demand…

Cool…but what about the S?

That’s the SUPPLY curve…that shows the numbers of goods made…

DO YOU:

GET

IT!!

Need

to see

It again

Slide10

Supply curve shiftsDemand curve shifts

Ford trucks

Ice Cream

Coffee beans

Gasoline

Ice Cream

Hula Hoops

Conclusion

Slide11

Based on the following information…what would happen to the supply curve?

Ford Motor Company has recently built a brand new factory in the state of Michigan, what will this do to the supply of Ford products?

S

D

Supply Shift RIGHT

Supply Shift LEFT

Slide12

WRONG!!!

TRY AGAIN

Slide13

WRONG!!!

TRY AGAIN

Slide14

WRONG!!!

TRY AGAIN

Slide15

WRONG!!!

TRY AGAIN

Slide16

WRONG!!!

TRY AGAIN

Slide17

S

D

YES!!!!

S

2

Yes, increased

factory capacity

Would lead to

More cars available!

Try another one!

Slide18

Types of supply & demand curve shifts

Demand curve

Shift…RIGHT

A demand curve shift to

the right means that there

is more demand for a

particular product

Demand curveShift…LEFT

A demand curve shift tothe left means that there

is LESS demand for a

particular product

Supply curve

shift….RIGHT

A supply curve shift to

the RIGHT means that there

is MORE supply of a

particular product

Supply curve

shift….LEFT

A supply curve shift to

the LEFT means that there

is LESS supply of a

particular product

Slide19

Based on the following information…what would happen to the supply curve?

Ben & Jerry’s Ice Cream company suffered a major setback in the production of ice cream when the factory workers went on strike….

S

D

Supply Shift RIGHT

Supply Shift LEFT

Slide20

S

D

YES!!!!

S

2

Yes, decreased

factory capacity

Would lead to

Less ice

cream available!

Try another one!

Slide21

Based on the following information…what would happen to the supply curve?

The Paramount Coffee company of East Lansing lost two of it’s five roasters to a small fire.

S

D

Supply Shift RIGHT

Supply Shift LEFT

Slide22

S

D

YES!!!!

S

2

Yes, decreased

roasting capacity

Would lead to

Less coffee

available!

Try another one!

Slide23

Based on the following information…what would happen to the supply curve?

Mattell, the leading producers of the world’s hula hoops, just aired a commercial showing Brad Pitt claiming his fitness level is completely based on his use of a hula hoop.

What will happen to the demand for hula hoops based on this?

S

D

Demand Shift RIGHT

Demand Shift LEFT

Slide24

Based on the following information…what would happen to the supply curve?

The local weather station predicted that over the Fourth of July weekend there would be major heat wave in the state of Michigan

S

D

Demand

Shift RIGHT

Demand

Shift LEFT

Slide25

Based on the following information…what would happen to the supply curve?

On Tuesday of last week, local radio station 97.5 fm, offered gallons of gas at the local gas station for only .97 cents per gallon…what might this do to the demand curve?

S

D

Demand Shift

RIGHT

Demand Shift

LEFT

Slide26

S

D

YES!!!!

Yes, public opinion

would lead to

more demand for

Hula hoops !

Try another one!

D

2

Slide27

S

D

YES!!!!

Yes,

a major heat wave

would lead to an

Increased demand

for ice cream!

Try another one!

D

2

Slide28

S

D

YES!!!!

Yes,

such a cheap price

for gasoline would

result in higher

demand!

Try another one!

D

2

Slide29

WRONG!!!

TRY AGAIN

Slide30

WRONG!!!

TRY AGAIN

Slide31

WRONG!!!

TRY AGAIN

Slide32

WRONG!!!

TRY AGAIN

Slide33

WRONG!!!

TRY AGAIN

Slide34

Supply & DemandCurve shifts…

Impacted by outside factors

Can move right or left

a shift identifies how the price of the good might change

- but that is the next lesson…