Eleanor Pena - Demand and Supply Curve Shifts
By eleanorpena, Updated
Created by Eleanor Pena
September 21, 2017
One Sunday afternoon, all four citizens from the town of Rollesville were grocery shopping for their juice. Each citizen purchased one bottle or carton of juice.
Hey Margaret, did you hear about the new group of people moving into our city this week? Our town population is HUGE now!
On the following Sunday afternoon, the town of Rollesville's population had increased to eleven citizens. Instead of four juice cartons or bottles being purchased on Sundays, now there were eleven juice cartons or bottles being purchased every Sunday. The increase in population caused a shift to the right of the demand curve.
Marge's Pizzeria makes one pizza per day. The input cost of producing each pizza is pretty expensive due to the exotic ingredients they use. This limits the supply of pizzas from Marge's Pizzeria.
Woah! Did you hear the news, Marge? The companies we purchase our ingredients from drastically lowered the costs of everything they sell!
Amazing! We can increase our pizza supply ASAP!
Marge's Pizzeria now makes three pizzas per day. Due to the decrease in the input cost of producing pizzas, the supply curve of Marge's pizzas shifted to the right.
Eleanor Pena Period 6 Economics 9/26/2017
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