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GraphingSupplyandDemand 1
GraphingSupplyandDemand 1
GraphingSupplyandDemand 1
Supply Schedule
$18,000
for the iPhone X
Quantity Price
50 $5,000 $14,000
100 $7,000
PRICE
200 $9,000 $10,000
300 $11,000
400 $13,000 $6,000
500 $15,000
Law of supply: ______________ $2,000
_____________________________
_____________________________
300
500
50
QUANTITY
Demand Schedule
for the iPhone X $18,000
Quantity Price
50 $15,000 $14,000
PRICE
100 $14,000
200 $12,000 $10,000
300 $9,000
400 $7,000 $6,000
500 $5,000
Law of demand: _______________
_______________________________ $2,000
_______________________________
500
300
50
QUANTITY
Directions: Answer the following questions using the models you
created above.
1. Why does the supply curve move upward from left to right?
2. Why does the demand curve mirror or move downward from left to right?
Graphing Supply & Demand
3. Who do you believe is impacted by the supply curve and why?
$2,000
50
300
500
QUANTITY
2. What is the highest point on the demand curve? $_____/ _____ phones
3. The Equilibrium is the point where the supply and demand curves cross.
Place a dot there. What is the significance of this point?
Graphing Supply & Demand
ANSWER KEY Directions: Analyze the demand and supply schedules
to create a demand and a supply curve. Then define each law.
Supply Schedule
$18,000
for the iPhone X
Quantity Price
50 $5,000 $14,000
100 $7,000
PRICE
200 $9,000 $10,000
300 $11,000
400 $13,000 $6,000
500 $15,000
Law of supply: Price and quantity $2,000
increase together (a positive
slope/ upward sloping)
300
500
50
QUANTITY
Demand Schedule
for the iPhone X
Quantity Price $18,000
50 $15,000
100 $14,000 $14,000
PRICE
200 $12,000
300 $9,000 $10,000
400 $7,000
500 $5,000 $6,000
Law of demand: Quantity purchased
varies inversely with price (a
negative slope/ downward $2,000
sloping)
500
300
50
QUANTITY
Directions: Answer the following questions using the models you
created above.
1. Why does the supply curve move upward from left to right?
The more product available the more the company make
2. Why does the demand curve mirror or move downward from left to right?
Graphing Supply & Demand
Answers will vary.
Diminished marginal utility (each additional item/unit gives less
“happiness” than the one prior
The more consumed/ purchased, the less desired.
Like Costco, buy in bulk and save.
Costs a lot to build something, if you build only a few, the investment
into the resources will cost more – i.e. cars: build two cars is
expensive, build 2,000 cars is more cost effective because you can
resuse what you have invested in more.
$2,000
50
300
500
QUANTITY
3. The Equilibrium is the point where the supply and demand curves cross.
Place a dot there. What is the significance of this point? $12,000 / 250
phones. This is the point where supply and demand cross, showing were
the price should be set – where producers and consumers can seemingly
agree on a price.