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    Market Changes in Supply

    Uploaded by

    OhYeah
    The document discusses how markets respond to changes in supply and quantity supplied. It provides 5 scenarios and asks the reader to graph and explain each situation. For scenario 1, the cost of inputs for cakes increases, decreasing the supply. For scenario 2, a more efficient production method for hot chocolate increases the supply. For scenario 3, a new cookie producer entering the market increases the supply of cookies. For scenario 4, expected future increases in input costs for brownies leads suppliers to increase current supply. For scenario 5, an increase in the price of ice cream cones raises the quantity supplied.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Market Changes in Supply

    Uploaded by

    OhYeah
    144 views5 pages
    The document discusses how markets respond to changes in supply and quantity supplied. It provides 5 scenarios and asks the reader to graph and explain each situation. For scenario 1, the cost of inputs for cakes increases, decreasing the supply. For scenario 2, a more efficient production method for hot chocolate increases the supply. For scenario 3, a new cookie producer entering the market increases the supply of cookies. For scenario 4, expected future increases in input costs for brownies leads suppliers to increase current supply. For scenario 5, an increase in the price of ice cream cones raises the quantity supplied.

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    market_changes_in_supply

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    The document discusses how markets respond to changes in supply and quantity supplied. It provides 5 scenarios and asks the reader to graph and explain each situation. For scenario 1, the cost of inputs for cakes increases, decreasing the supply. For scenario 2, a more efficient production method for hot chocolate increases the supply. For scenario 3, a new cookie producer entering the market increases the supply of cookies. For scenario 4, expected future increases in input costs for brownies leads suppliers to increase current supply. For scenario 5, an increase in the price of ice cream cones raises the quantity supplied.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    144 views5 pages

    Market Changes in Supply

    Uploaded by

    OhYeah
    The document discusses how markets respond to changes in supply and quantity supplied. It provides 5 scenarios and asks the reader to graph and explain each situation. For scenario 1, the cost of inputs for cakes increases, decreasing the supply. For scenario 2, a more efficient production method for hot chocolate increases the supply. For scenario 3, a new cookie producer entering the market increases the supply of cookies. For scenario 4, expected future increases in input costs for brownies leads suppliers to increase current supply. For scenario 5, an increase in the price of ice cream cones raises the quantity supplied.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 5

    Market Changes in Supply

    Practice your graph skills with this worksheet. You will be given several different scenarios that
    occur to a market that was in equilibrium before this scenario occurred.
    (a) Graph the new situation so that it shows the change that occurred.
    (b) Circle where indicated whether there has been a change in supply, or a change in quantity
    supplied.
    (c) Be sure to show the new equilibrium price and quantity points on your graph.
    (d) Explain the reason for the change.

    Here are your scenarios:

    1. The cost of the eggs and milk used to make cakes at the local bakery increases. What
    happens in the bakery market for cakes?

    Cakes
    Graph: What changes: S or Qs?

    2. There is a new invention that makes hot chocolate in an automatic processor that adds
    marshmallow whipped cream that is extremely efficient and cost effective. What happens
    in the manufacturers market?

    Hot Chocolate
    Graph: What changes: S or Qs?
    3. A new producer of cookies enters the industry. What happens in the market for cookies?

    Cookies
    Graph: What changes: S or Qs?

    4. Brownie producers expect the cost of their raw materials to increase in 4 months. What
    happens in the market for the supplier today?

    Brownies
    Graph: What changes: S or Qs?

    5. The price of the ice cream cone sold by the ice cream truck goes up 10 cents a cone.
    What happens in this market from the suppliers’ point of view?

    Ice Cream
    Cones Graph: What changes: S or Qs?
    Market Changes in Supply Answer Key
    Practice your graph skills with this worksheet. You will be given several different scenarios that
    occur to a market that was in equilibrium before this scenario occurred.
    (a) Graph the new situation so that it shows the change that occurred.
    (b) Circle where indicated whether there has been a change in supply, or a change in quantity
    supplied.
    (c) Be sure to show the new equilibrium price and quantity points on your graph.
    (d) Explain the reason for the change.

    Here are your scenarios:


    1. The cost of the eggs and milk used to make cakes at the local bakery increases. What
    happens in the bakery market for cake?

    Cake
    What changes: S or Qs? S
    Graph:
    1d. Since cost of input prices
    rise, supply will decrease for
    cake.

    2. There is a new invention that makes hot chocolate in an automatic processor that adds
    marshmallow whipped cream that is extremely efficient and cost effective. What happens
    in the manufacturers market?

    Hot Chocolate Graph:

    What changes: S or Qs? S

    2d. Due to technical


    improvement, costs decrease
    so supply increases
    3. A new producer of cookies enters the industry. What happens in the market for cookies?

    Cookies Graph:

    What changes: S or Qs? S

    3d. When more suppliers enter the


    cookie industry, the supply
    increases for cookies.

    4. Brownie producers expect the cost of their raw materials to increase in 4 months. What
    happens in the market for the supplier today?

    Brownies Graph:
    What changes: S or Qs? S

    4d. Since input costs are projected to


    rise in the future, suppliers will
    provide more brownies now at a
    cheaper cost.
    5. The price of the ice cream cone sold by the ice cream truck goes up 10 cents a
    cone. What happens in this market from the suppliers’ point of view?

    Ice Cream Cones Graph:

    What changes: S or Qs? Qs

    5d. When the price of ice cream cones rises, there will be an increase in quantity supplied of ice
    cream con

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