O: What are the determinants of supply? Do Now: read the two scenario below, then address the questions that follow A. A higher price of peanut butter increases the amount produced, but it does not increase the supply of peanut butter. 1. Explain how this is possible B. A city puts a new rule into effect about the kinds of beverages that may be sold in schools. Sugary sodas must be replaced by bottled water, fruit juices, and sports drinks. 2. How will this decision affect the supply of each category of beverages at the schools? What factor that affects supply is demonstrated in this situation? previous lessons, you learned the difference between change in demand and change in