Worksheet 5: The supply curve

Craig Ferguson sells kilts in a small shop in Edinburgh, Scotland. Craig’s family-run business also
relies on trade at Scottish trade fairs around the UK to sell a range of traditional Scottish clothing.
Craig is keen to make as much profit as possible as he hopes to expand his range of traditional
Scottish attire.
The table below shows the number of kilts Craig is prepared to offer for sale at different prices.
Price (£) 20 40 60 80 100 120 140 160
Number of kilts 0 10 20 30 40 50 60 70

1. How many kilts would Craig be willing to see if the price was £60?

2. Why is supply zero when the price is £20?

3. Draw a supply curve representing the information in the table above. Make sure your graph is
fully labelled.

4. Craig moves his manufacturing plant to smaller facilities. This reduces his costs of production.
On your graph above, plot a new supply curve using the information below.
Price (£) 20 40 60 80 100 120 140 160
Number of kilts 10 20 30 40 50 60 70 80

5. Look at Craig’s supply schedule. What impact has the decrease in production costs had on the
number of kilts he is willing to sell at each price?

6. What impact has the decrease in the cost of production had on the supply curve?

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