Post on 01-Jan-2016
description
Graphing Supply
The Law of Supply
P QS
P QS
Step #1• Draw an standard y-axis
• Label the y-axis “Price”
Price
Step #2• Draw an standard x-axis
• Label the x-axis “QS”
Price
QS
Step # 3• Draw a standard supply curve
• Label the curve “S1”
Price
QS
S1
Step #4• Read the problem
• What determinant of supply is dictating the shift in supply?
• Draw the shift in supply.
Step #5
Graphically depicting shifts in supply
An increase in supply
Price
QS
S1
S2
A decrease in supply
Price
QS
S1
S2
Step # 6
• Label the determinant