Change+in+Supply+AP+Mice

= Change In Supply =

There are 6 determinants of supply that can cause a supply curve to shift to either the left or the right.

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G overnment regulation, Taxes, and subsidies R esource costs/ cost of production A dvances in Technology P rice of goods made with the same resources

E xpectations about economic future S ellers in the market

__ Increase in Supply __
The supply curve shifted to the right. That means there was an INCREASE in supply. Equalibrium quantity INCREASED, while equilibrium price DECREASED.



__ Decrease in Supply __
The supply curve shifted to the left. That means there was an DECREASE in supply. Equalibrium quantity DECREASED, while equilibrium price INCREASED.



__ Practice __

 * 1) Graph the affected supply curve for milk shakes if the FDA requires all milk shakes to be made with pasteurized milk. (Graph the original supply curve and the shifted supply curve)
 * 2) Graph the affected supply curve for state universities if the state government increases their budget and promotes increase in number of schools.(Graph the original supply curve and the shifted supply curve)
 * 3) Graph the affected supply curve for corn when the price of popcorn goes up. (Graph the original supply curve and the shifted supply curve)

__ Answers __
2. 3..

__ Article __
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This article is about rising oil prices, and how oil is still cheap so many more rich Americans buy oil than do other rich people throughout the world. Since Americans can afford oil and it's cheaper, they will plan infrastructure, cars, and other products around oil instead of using other resources.

__ References __
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