Drag the Headlines to the Correct Supply Bucket
Decide whether each headline would increase or decrease the market supply for a good or service. Drag each card into the best-fit bucket.
Headlines to Sort
Government announces new subsidy program for grain farmers.
Major factory fire shuts down production at a key supplier.
Breakthrough technology cuts production costs in half.
New environmental regulation raises required safety equipment costs.
Number of firms in the industry doubles over five years.
Producers expect prices to be higher next year and hold back current output.
Buckets
Increase Supply
Headlines that would shift the supply curve to the right.
Decrease Supply
Headlines that would shift the supply curve to the left.
Drag the New Supply Curve
Read the headline, then drag the new supply curve S₂ either to the right (increase in supply) or to the left (decrease in supply) relative to the original curve S.
Headline
Government announces a new subsidy for solar panel manufacturers.
Price
Quantity
S
S₂