Econ
Unit 2.12
TEACHER
ANALYZING SUPPLY HEADLINES
For each supply headline you analyze, do the following:
(1) Draw what will likely happened to the supply curve based on the headline
(2) Explain the graph (move up, move down, shift left, shift right)
Record Peach
Harvest – Price
Lowest in a Decade
S2
If the cost of peaches goes down, that is a
good thing and the supply curve for peach
pies will SHIFT RIGHT.
If a car company closes factories, that is a
bad thing and the supply curve for minivans
will SHIFT LEFT.
U.S. Car Company to
Close Six Factories
S2
Shoe Manufacturer
Increases Prices on
All Styles
If the price of all shoes goes up, we MOVE
UP the supply curve which means the
QUANTITY supplied will decrease.
Gas Prices to Stay
Low This Year – Rise
Dramatically Next
Year
If the cost of gas is going to go up in the future,
suppliers will supply less now (so they can
make more $$$ in the future) which will make
the supply curve SHIFT LEFT.
S2
Robots Make
Automobile
Assembly Faster,
Cheaper
S2
If Congress passes a new tax, that is a bad
thing and the supply curve for sugar will
SHIFT LEFT.
Congress Passes
New “Sugar Tax”
S2
Fire Destroys
Thousands of Acres
of Forest in Pacific
Northwest
If robots can make automobiles faster, that
is a good thing and the supply curve for
cars will SHIFT RIGHT.
If a fire destroys trees, then the cost of inputs
will go up because there are less trees. This is a
bad thing and will cause the supply curve to
SHIFT LEFT.
S2
President Approves
Subsidy for Solar
Energy Industry
S2
If the gov’t approves a subsidy for solar
energy, that is a good thing for solar panels
and the supply curve will SHIFT RIGHT.