For these problems, do the following steps.

1. Which of the six major shifters is acting here? For example, cost of inputs, technology, productivity (of workers), number of sellers, government regulation, expectations (of future price)?
2. Will this mean that supply increases or decreases?
3. Draw the curve shift.

1. The Spot Caf on Overland is doing great business with all the CCHS students and staff. The Coffee Bean sees an opportunity to make money and realizing that The Spot Caf only has one person working there at a time. The Coffee Bean opens a location across the street on Overland. What will happen to the supply of coffee on Overland?

A.

B.

C.

2. Ms. Perdue's scarf factory just bought a brand new coffee machine in the employee break room, making her employees, John, and Victor productive during their 12-hour shift (Before the coffee machine, Victor was regularly caught sleeping on John's shoulder). What will happen to the supply of scarves in Culver City?

3. The Dodgers successfully recruit all the hotshot college all-star for their next season, and they are again expected to win the World Series. The team's signed baseballs, which currently sell for $100, will probably sell for $300 once the team goes back to back with wins the World Series. What will happen to the CURRENT supply of baseballs signed by the Dodgers?

4. Due to global warming, the price of corn triples because of poor harvests in the Midwest. What will happen to the supply of all the tacos in the world made with corn tortillas?

5. A sushi factory in Japan Town specializes in making sushi shaped like skateboards. The factory just bought new, hi-tech equipment from Japan, along with all the other factories in town. What will happen to the supply of sushi in Los Angeles?

6. Imagine it is summertime. What will happen to the supply of Hot Cheetos if Frito Lay company (the makers of Hot Cheetos) knows that CCHS students will be back in school in the coming month?

Supply Scenario - Your Turn

Come up with two REAL WORLD scenarios that would affect the entire supply curve.

1. What is a product you want to sell at CCHS?

1. Create chart: How many do you think you would want to sell here at each price?

Price $

Quantity Supplied

1. Graph the supply for your product. Label it "S1"

1. What might happen to either INCREASE or DECREASE the Supply of your product?

1. What is the supply shifter at work here (cost of inputs, technology, productivity, number of sellers, government regulations, or expectations)?

1. Draw the curve shift on the graph below.