SUPPLY ASSIGNMENT

SUPPLY ASSIGNMENT
Directions:

After studying the content in the Supply Lesson, watching the videos, and taking notes complete the practice exercises on this handout. For the graphs you may graph by hand, use the chart tool from word processing or use an online graphing tool such as Chartgo.

Graph the Following Supply Schedule for Wombles. Label this Supply Curve S, and then answer the questions that follow.

SUPPLY OF Wombles

Price per Womble
Quantity Supplied
$10
20000
9
18000
8
16000
7
14000
6
12000
5
10000
4
8000
2

4000

1
1000

1. 1. At the price $5 per wombles sellers would be willing to sell __10000______ wombles.

1. 2. If the price increased to $10 sellers would be willing to sell ____20000________wombles.

1. 3. Such a change would be a/an increase in quantity supplied.

4. If the Price decreased to $2 sellers would be willing to sell _____________4000_wombles.

A new technology has been developed that makes producing wombles easier.

Shift in Supply of Wombles

Price per
Womble
Quantity Supplied
New Quantity Supplied

$10
20000
24000
9
18000
20000
8
16000
18000
7
14000
16000
6
12000
14000
5
10000
12000
4
8000
10000
2

4000

8000
1
1000
2000

1. 1. Graph the New Supply Schedule for wombles on the same graph with the Original Curve S. Label the new Curve S1 and the original curve S and then answer the questions that follow.

2. Comparing the New Supply Curve – S1 with the Original Curve – S you can say that the Change in Supply for wombles results in a Shift of the Supply Curve to the right. (highlight correct response.

3. Sellers are willing to sell a greater amount at each of the possible prices.

Insert Graph Below: