Supply Curve Shifts: Understanding Changes in Supply vs. Quantity Supplied

Economics Grades High School 6:15 Video
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Lesson Description

This lesson explores the critical distinction between a change in supply (shift of the entire curve) and a change in quantity supplied (movement along the curve) using real-world examples.

Video Resource

Change in supply versus change in quantity supplied | AP Macroeconomics | Khan Academy

Khan Academy

Duration: 6:15
Watch on YouTube

Key Concepts

  • Supply Curve
  • Change in Supply (Shift)
  • Change in Quantity Supplied (Movement Along Curve)
  • Price Elasticity of Supply
  • Market Equilibrium

Learning Objectives

  • Students will be able to differentiate between a change in supply and a change in quantity supplied.
  • Students will be able to identify factors that cause a shift in the supply curve.
  • Students will be able to analyze how government policies and production costs affect the supply of goods and services.

Educator Instructions

  • Introduction (5 mins)
    Begin by reviewing the law of supply and the basic representation of a supply curve. Ask students to define 'supply' in their own words. Briefly discuss factors that might influence a producer's willingness to supply a good or service.
  • Video Presentation (10 mins)
    Play the Khan Academy video: 'Change in supply versus change in quantity supplied'. Instruct students to take notes on the key differences between the two concepts and the examples provided.
  • Guided Discussion (15 mins)
    Facilitate a class discussion to clarify the concepts presented in the video. Use the discussion questions below to guide the conversation. Encourage students to provide their own examples.
  • Interactive Exercise: Scenario Analysis (15 mins)
    Divide students into small groups and provide each group with a different economic scenario (see interactive exercises below). Each group will analyze their scenario and determine whether it would result in a change in supply or a change in quantity supplied, and explain their reasoning.
  • Wrap-up and Assessment (5 mins)
    Review the key concepts and learning objectives. Administer the multiple-choice and fill-in-the-blank quizzes to assess student understanding.

Interactive Exercises

  • Scenario 1: Increase in the Price of Steel
    Assume steel is a major component in car manufacturing. How would an increase in the price of steel affect the supply of cars? Would it be a change in supply or a change in quantity supplied? Explain your reasoning.
  • Scenario 2: Government Subsidy for Solar Panels
    The government provides a subsidy to solar panel manufacturers. How would this affect the supply of solar panels? Would it be a change in supply or a change in quantity supplied? Explain your reasoning.
  • Scenario 3: Increase in the Market Price of Wheat
    Due to global events, the market price of wheat increases. How would this affect the quantity of wheat supplied? Would it be a change in supply or a change in quantity supplied? Explain your reasoning.

Discussion Questions

  • What is the key difference between a change in supply and a change in quantity supplied?
  • Can you think of examples of factors, other than those mentioned in the video, that might cause a shift in the supply curve for a particular product?
  • How might a technological advancement affect the supply curve for a specific good or service?
  • How does the concept of elasticity relate to changes in supply and quantity supplied?

Skills Developed

  • Critical Thinking
  • Economic Reasoning
  • Analytical Skills
  • Problem-Solving

Multiple Choice Questions

Question 1:

A change in quantity supplied is represented by:

Correct Answer: A movement along the existing supply curve.

Question 2:

Which of the following would cause a shift in the supply curve for gasoline?

Correct Answer: A decrease in the price of crude oil (used to refine gasoline).

Question 3:

A government-imposed price ceiling below the equilibrium price will lead to:

Correct Answer: A decrease in quantity supplied.

Question 4:

If the cost of producing smartphones decreases due to technological advancements, this will result in:

Correct Answer: A decrease in the quantity supplied of smartphones.

Question 5:

Which of the following factors primarily causes a *change in supply* rather than a *change in quantity supplied*?

Correct Answer: A change in the cost of resources used to produce the good.

Question 6:

If a new tax is imposed on the production of a good, what happens to the supply curve?

Correct Answer: There is a movement along the curve.

Question 7:

What does the supply curve represent?

Correct Answer: The quantity of a product that suppliers are willing to sell at various prices.

Question 8:

What does a change in supply represent?

Correct Answer: A shift of the entire supply curve.

Question 9:

What does a change in quantity supplied represent?

Correct Answer: A movement along a fixed supply curve.

Question 10:

What can cause a shift in the supply curve?

Correct Answer: Changes in the cost of resources used to produce the good.

Fill in the Blank Questions

Question 1:

A __________ in supply is represented by a shift of the entire supply curve.

Correct Answer: change

Question 2:

A __________ in quantity supplied is represented by a movement along the supply curve.

Correct Answer: change

Question 3:

An increase in the cost of __________ will shift the supply curve to the left.

Correct Answer: production

Question 4:

A government __________ on a good will shift the supply curve to the right.

Correct Answer: subsidy

Question 5:

__________ advancements can lead to an increase in supply by lowering production costs.

Correct Answer: Technological

Question 6:

A price __________ set below the equilibrium price will lead to a decrease in quantity supplied.

Correct Answer: ceiling

Question 7:

The law of supply states that as price increases, quantity supplied __________.

Correct Answer: increases

Question 8:

A change in __________ preferences does not affect the supply curve.

Correct Answer: consumer

Question 9:

A decrease in __________ tax on gas stations will shift the supply curve to the right.

Correct Answer: property

Question 10:

If the price of a related good that producers could produce instead increases, the supply curve for the original good will shift to the __________.

Correct Answer: left

Educational Standards

SOC.9-12.E.3.1:Analyze how price and non-price factors affect the demand and supply of goods and services available in the marketplace. SOC.9-12.E.3.2:Explain what causes shortages and surpluses including government-imposed price floors, price ceilings, and other government regulations and the impact they have on prices and people’s decisions to buy or sell. SOC.9-12.E.10.3:Explain how changes in supply and demand cause prices to change and in turn, cause buyers and sellers to change, including changes in price of productive resources and technologies used to make the product, profit opportunities available to producers for selling other products, number of sellers in a market, consumer incomes, consumer options, and the number of consumers in a market.

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