Factors That Affect Supply

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					                                                             Factors That Affect Supply                Factors That Affect Demand
                                                                                                5. Consumer Tastes/Preferences
                                                         1. Cost of Resources/Production
                                     Increase- Right                                            6. Consumer Income
                                                         2. Number of Sellers
                                     Decrease- Left                                             7. Consumer Population
                                                         3. Advances in Production
                                                                                                8. Consumer expectations about future
                                                         4. Seller expectations about the       versions of product
        Remember IRDL the Turtle!!
                                                         future
                                                                                                9. Availability and price of substitutes

                                                                                                10. Availability and price of complements



Directions: Read each “Egg Market” scenario in the chart below. Decide whether supply or demand and price will increase or
decrease. Then, decide which factor (1-10 above) explains the change. Finally, draw the new supply or demand line on the graph. Use
worksheet # 59 for help.

           Scenario                     SUPPLY               DEMAND               MARKET PRICE         Factor
                                                                                                          #
(Mark only 2 boxes per row)       Increase   Decrease   Increase   Decrease     Increase    Decrease   (1-10)

A new disease kills millions of
egg laying chickens in the
United States.
          Scenario                     SUPPLY               DEMAND             MARKET PRICE        Factor
                                                                                                      #
(Mark only 2 boxes per row)      Increase   Decrease   Increase   Decrease   Increase   Decrease   (1-10)

Egg production goes up as
farmers enlarge the size of
poultry farms.




          Scenario                     SUPPLY               DEMAND             MARKET PRICE        Factor
                                                                                                      #
(Mark only 2 boxes per row)      Increase   Decrease   Increase   Decrease   Increase   Decrease   (1-10)

Eating eggs is discovered to
lower the risk of heart attack
and stroke.




          Scenario                     SUPPLY               DEMAND             MARKET PRICE        Factor
                                                                                                      #
(Mark only 2 boxes per row)      Increase   Decrease   Increase   Decrease   Increase   Decrease   (1-10)

Due to pig shortages, the
price of bacon goes up 50% .
(what does this do to eggs?)

				
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