Worksheet: Change in supply or change in quantity supplied?

Factors that change supply. For each of the following scenarios first, identify the factor that causes the market supply to change. Then predict whether the event causes the market supply to rise, fall or stays the same?

Scenario

Identify the market

What factor has changed?

Supply increases or decreases? Or stays the same?

Which graph illustrates the change? (See the graphs below)

a. innovations in deep-water drilling equipment allow the US to access more oil from the Gulf Coast:

b.The manufacture of iPods requires tungsten, and the US is boycotting purchases from Congo.

d. Price of gold has dropped from $2000 to $1800 per ounce.

f. rising paper costs make traditional textbooks expensive to produce:

g. Warmer spring temperature caused an unexpected bumper crop in light green chardonnay grapes, a main ingredient in production of champagne.

($/pound) S2 So S1 Decrease Increase in in Supply Supply A B C P Q2 Q1 Quantity (Thousands pounds/year)