Students use this worksheet to practice graphing shifts in supply curves based on scenarios like input costs, subsidies, and labor strikes.

Let's go through each scenario on the Supply Worksheet step by step, analyzing whether it represents a change in supply (a shift of the supply curve) or a change in quantity supplied (a movement along the supply curve), and identify the determinant causing the change.

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1. Leather has become more expensive.

- Good: Leather Shoes
- Graph: Supply of Leather Shoes

#### Analysis:
Leather is an input (raw material) used to make leather shoes. When the price of leather increases, the cost of production rises. This makes producing leather shoes less profitable at every price level, so producers are willing to supply fewer shoes.

This affects the entire supply curve, not just one point on it — meaning it’s a change in supply, specifically a decrease in supply.

#### Graph Change:
- Draw a new supply curve (S₂) to the left of S₁.
- Label it as S₂.

#### Answer:
- Change in supply or quantity supplied: Change in supply
- Determinant: Input prices (cost of leather)

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2. Wheat farmers have been given subsidies.

- Good: Wheat
- Graph: Supply of Wheat

#### Analysis:
Subsidies lower the cost of production for wheat farmers. This means they can produce more wheat at every price level, increasing their willingness to supply.

This causes the supply curve to shift rightward — a change in supply.

#### Graph Change:
- Draw a new supply curve (S₂) to the right of S₁.
- Label it as S₂.

#### Answer:
- Change in supply or quantity supplied: Change in supply
- Determinant: Government subsidies (government policy)

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3. Workers in a furniture factory have gone on strike and are no longer working to make new furniture.

- Good: Furniture
- Graph: Supply of Furniture

#### Analysis:
A strike reduces the labor available to produce furniture. With fewer workers, the factory can't produce as much furniture at any given price. This reduces the overall supply.

This is a decrease in supply — a shift leftward of the supply curve.

#### Graph Change:
- Draw a new supply curve (S₂) to the left of S₁.
- Label it as S₂.

#### Answer:
- Change in supply or quantity supplied: Change in supply
- Determinant: Number of sellers / Labor availability

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4. Television shows like Ace of Cakes and Cake Boss inspired cake makers to enter the cake-making industry.

- Good: Cake
- Graph: Supply of Cake

#### Analysis:
More people entering the cake-making industry increases the number of producers. More producers mean more cakes can be supplied at every price level.

This leads to an increase in supply — the supply curve shifts rightward.

#### Graph Change:
- Draw a new supply curve (S₂) to the right of S₁.
- Label it as S₂.

#### Answer:
- Change in supply or quantity supplied: Change in supply
- Determinant: Number of sellers (more producers entering the market)

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✔ Summary Table:

| Scenario | Change Type | Determinant |
|--------|-------------|-------------|
| 1. Leather more expensive | Change in supply | Input prices |
| 2. Subsidies to wheat farmers | Change in supply | Government policy (subsidies) |
| 3. Furniture workers on strike | Change in supply | Number of sellers / Labor |
| 4. More cake makers enter | Change in supply | Number of sellers |

> 🔍 Note: All four scenarios involve changes in supply (curve shifts), not changes in quantity supplied. A *change in quantity supplied* would only occur if the price of the good itself changed, leading to movement along the same supply curve.

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Final Answer (for worksheet):

1.
- Change in supply or quantity supplied: Change in supply
- Determinant: Input prices

2.
- Change in supply or quantity supplied: Change in supply
- Determinant: Government subsidies

3.
- Change in supply or quantity supplied: Change in supply
- Determinant: Number of sellers (labor availability)

4.
- Change in supply or quantity supplied: Change in supply
- Determinant: Number of sellers

And draw the appropriate leftward or rightward shifts on each graph accordingly.