The Law of Supply

1
The Law of Supply

• Revenue Activity

2
Products to Sell

• Basket of Apples
• Shirt ?
• Cup and Saucer
• Hammer ?

3
Production Manager

• Each group must choose 1 production manager.
• All finished products will be placed on the
  production managers desk at the end of each
  round.
• The production manager must announce how many of
  each good his/her group has produced

4
Student Accountant

• Each group must choose 1 student accountant.
• The student accountant must use the Revenues
  Worksheet to compute the total revenues earned
  for each good.
• The student accountant must also sum up the total
  revenues to determine the amount earned per round.

5
Creating Your Goods

• You can choose to produce 1, 2, 3, or all 4
  goods.
• You must be sure that each good your produce is
  well-made.
• All goods must have at least 2 colors in them!
• You will have 5 minutes per round to make as many
  goods as possible.
• Miss Schiltz has the right to throw out any goods
  that are not up to par!

6
Rounds

• There will be three 5 minute rounds.
• Use your time wisely! Come up with a production
  plan!
• You can do whatever it takes to create as many
  products as possible.
• Work together.TOGETHER IS BETTER!

7
Another Look at the Products to Sell

• Basket of Apples
• Shirt ?
• Cup and Saucer
• Hammer ?

8
Ending Results

• Mason- 126
• Laurel- 148
• Austin- 160
• Kelsey- 74
• Cole- 104
• Brianna- 179

9
Round 1 Information
10
Round 2 Information
11
Round 3 Information
12
Lets Reflect

• Who were the SUPPLIERS in this activity?
• Whom did the suppliers represent?
• If the market price for a good is high, what are
  suppliers likely to do?
• If the market price for a good is low, what are
  suppliers likely to do?
• If supply increases while demand stays the same,
  what happens to the market price?
• If supply decreases while demand stays the same,
  what happens to the market price?

13
The Law of Supply

• The LAW OF SUPPLY states that suppliers will
  supply more goods at high prices than at low
  prices.
• There is a direct relationship between price that
  the quantity of goods producers will supply.
• Supply and demand work together! If demand stays
  the same, then an increase in supply will
  decrease the price of a good.