6. Individual and market supply

Suppose that Brian and Crystal are the only suppliers of pizza slices in a particular market. The following table shows their annual supply schedules:

Price	Brian's Quantity Supplied	Crystal's Quantity Supplied
(Dollars per slice)	(Slices)	(Slices)
1	0	20
2	15	40
3	25	55
4	30	65
5	35	70

On the following graph, plot Brian's supply of pizza slices using the green points (triangle symbol). Next, plot Crystal's supply of pizza slices using the purple points (diamond symbol). Finally, plot the market supply of pizza slices using the orange points (square symbol).

13. How shifts in demand and supply affect equilibrium

Consider the market for pens. Suppose that increased medical concerns over lead pencils have led schools to steer away from pencil use in favor of pens. Moreover, the price of ink, an important input in pen production, has increased considerably.

On the following graph, labeled Scenario 1, indicate the effect these two events have on the demand for and supply of pens.

Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther.

Compare both the Scenario 1 and Scenario 2 graphs. Notice that after completing both graphs, you can now see a difference between them that wasn't apparent before the shifts because each graph indicates different magnitudes for the supply and demand shifts in the market for pens.

Use the results of your answers on both the Scenario 1 and Scenario 2 graphs to complete the following table. Begin by indicating the overall change in the equilibrium price and quantity after the shift in demand or supply for each shift-magnitude scenario. Then, in the final column, indicate the resulting change in the equilibrium price and quantity when supply and demand shift in the direction you previously indicated on both graphs. If you cannot determine the answer without knowing the magnitude of the shifts, choose Cannot determine.

Equilibrium Object	Change in Equilibrium Objects
Scenario 1	Scenario 2	When Shift Magnitudes Are Unknown
Price
Quantity

True or False: When both the demand and supply curves shift, the curve that shifts by the smaller magnitude determines the effect on the undetermined equilibrium object.

True

False