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A PREDICTING THE SHIFT OF THE SUPPLY CURVE
PT
E Objectives:
Learning
By R
the end of the session the students will be able to:
 identify factors that affect a change in supply; and,
2.
 explain a graph that depicts a change in supply.
LE
SS Targets:
Lesson
Lesson targets are skills and knowledge you want to be able to accomplish at the end of the session.
Othe lesson targets carefully and keep them as we go through in today’s session.
Read
N
 I can discuss how the determinants of supply affect a change in demand.
3.
 I can analyze, illustrate and interpret a graph that shows a change in supply.
2
REVIEW
Directions: Today is another day of learning! Let’s refresh your thoughts from your M.I.L.Y. (Most
Important Learning of Yesterday). What do you remember most from our learning
session last time?

a. State the law of supply:

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b. What is the reason for the change in quantity supplied?

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Activity 1. Map of Conceptual Change (MOCC)

Directions: Answer the BEFORE part by writing your thoughts on the questions found in the middle
portion of the table. Leave the After part blank at this time.

Understanding the Change in Supply

Before – After Chart

BEFORE QUESTIONS AFTER

What is the movement of the

curve when there is a change in
supply?

What Causes a shift in the

supply curve?

DISCUSSION
Concept Notes:

DETERMINANTS OF DEMAND
a. Number of Producers
b. Costs of Production (Input Prices or Factor Prices)

c. Technological Change
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 d. Prices of Other Produced Goods
 Production Complements
 Production Substitutes
e. Taxes and subsidies
f. Producer Expectations
 Optimistic/Pessimistic

RULE:
Supply curve will shift to the RIGHT when the supply INCREASES, and shifts to the LEFT as
supply DECREASES.

P S1
S2
Example:
JHEMS group of companies expanded its
operations offering the same set of product lines to
its market.

0 Q

P S2
S1
Example:
The new policy in the government resulted to
increase in taxes to be paid by micro –
entrepreneurs.

0 Q

Let’s explore more the determinants of demand by asking the following questions:

IN INCOME
Does a rise in a person’s income will lead to
an increase in demand (shift demand curve
to the right), a fall will lead to a decrease in
demand for normal goods?
 Yes, because the person has more capacity
to buy or less capacity to buy that is why
demand rise or fall when income rises or
fall.

IN CONSUMER TASTES AND

PREFERENCES
Are favorable change leads to an increase in
demand, while unfavorable change leads to
decrease?
IN NUMBER OF CONSUMERS/BUYERS
Do more buyers lead to an increase in
demand; fewer buyers lead to decrease?
IN PRICE OF RELATED GOODS
a. Substitute Goods
(those that can be used to replace each
other): Does price of substitute and
demand for other good are directly
 Yes, because people buys more when they
liked the product. On the other hand, they
will not buy it again if they were not
satisfied with the product.
 Yes, the more buyers will lead to an
increase in demand; fewer buyers lead to
decrease in demand.
 Yes, because …
a. For example:
If the price of coffee rises, the
demand for tea should increase
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 related?
b. Complement Goods
(those that can be used together): Does
price of complement and demand for
the other good are inversely related?
IN EXPECTATIONS OF FUTURE
PRICES AND INCOME
a. Future Price
Does consumers’ current demand will
increase if they expect higher future
prices; their demand will decrease if
they expect lower future prices?
b. Future Income
Does consumers’ current demand will
increase if they expect higher future
income; their demand will decrease if
they expect lower future income?
assuming that the price of tea
doesn’t change or lower that the
coffee.
b. For example:
If the price of ice cream increases,
the demand for ice cream toppings
will decrease.
 Yes, because …
a. Consumers’ current demand will
increase if they expect higher future
prices; their demand will decrease if
they expect lower future prices.
b. Consumers’ current demand will
increase if they expect higher future
income; their demand will decrease
if they expect lower future income.

Activity 2. What Happened to the Demand?

Directions: Use the graph to show the prices of goods. Write the letter of your answer that best
answers the following statements.

A. B. C. NO EFFECT

______ 1. General increase in income.

______ 2. Increase in price of substitute.
______ 3. Decrease in the number of buyers.
______ 4. Increase in income in relation to inferior good.
______ 5. Decrease in income in relation to normal good.
______ 6. Decrease in price of substitute – pepsi for coke.
______ 7. Increase in price of complement – beer for pizza.
______ 8. Consumers suddenly have an increased desire for corn.
______ 9. If I expect the price of the product to decrease in the future.
______ 10. Decrease in population of a barangay in Cagayan de Oro due to flooding.
______ 11. Beer suddenly became the only type of alcohol available for consumption.
______ 12. Changes in the consumption of fuel and air – conditioning during summer.
______ 13. A decrease in the quality of the good e.g. computers are now more powerful.
______ 14. An effective advertising campaign could affect the quantity demanded for a particular
good.
______ 15. Ma’am Dizon change preference in buying a brand of shoes, from Rusty Lopez to Mario
de Boro. What happened to the demand on the former?

Activity 3. Graphical Analysis

Directions: Give the possible reasons for shifts in the demand curve.

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A. Shift to the right
1. ____________________________
2. ____________________________
3. ____________________________
4. ____________________________
B. Shift to the left
1. ____________________________
2. ____________________________
3. ____________________________
4. ____________________________

Choose 1 reason either shift to the right or left or both and expound it with example in 3 – 5
sentences.
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Activity 4. Revisiting Map of Conceptual Change (MOCC)

Directions: This time, fill up the AFTER part of the table.

Understanding the Change in Demand

Before – After Chart

BEFORE QUESTIONS AFTER

What is the movement of the

curve when there is a change in
demand?

What Causes a shift in the

demand curve?

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