1. In your notes:
What is the minimum, per hour I would
have to pay you to work at Subway?
Pretend there is no minimum wage and you could work for less than $7.85
3. Law of Supply
• As the price of a good increases, producers will
produce more (,or try to) quantity. As the price of the
good decreases, producers will produce less quantity.
P Qs and P Qs
The supply curve is always
upward sloping
$
Q
S
9. In your groups
• Choose either a computer company or a car
company
• Your boss wants your group to figure out how to
produce MORE of your goods per year
• Consider every factor of production (land, labor,
capital)
15. 4 Determinants of Supply
Mnemonic
• Price of Production
• Expectations
• Sellers (#)
• Technology
•PEST = supply determinants
•TRIBE = demand determinants
16. PEST Changes Assignment
1. For each part of PEST, identify one positive
and negative change to the car or computer
market and sketch a correctly drawn graph
2. Find an article either on your phone or in a
financial magazine, write the headline, the
market, part of PEST that is changing and
graph it.