Supply

I-phones

Working out your Supply

• You own a shop that is allowed to sell iphones. You are responsible for pricing the products

• Considering it cost $10 to make an iphone, how many would you be willing to sell to the world at $11?

Working out your Demand

• What about at the following price ranges?

$20 $100 $150 $300 $600

Graphing the Results

• Now plot your results on a graph.• How would you describe the relationship

between your two components?

Market Supply

• So far we have established our own individual supply for iphones. Market supply is the supply for a good from everyone that is selling it.

• If we were to collect, and average out our results, we would create market supply.

Shifts in Demand

• What’s the difference between quantity demanded and demand?

• If price remained the same, but you wished to purchase more or less, this would be a change in your demand.

$5

Qty Demanded 2

Qty Demanded2 5

Determinants of Supply• What would cause you to supply more or less

even though price has not changed?

I want more because…

Exercise

• Complete the handout entitled ‘Supply Exercises’

Key vocabulary

• Quantity supplied• Supply• Extension in Supply• Contraction in Supply• Law of Supply• Determinants of Supply• Individual vs Market Supply