Graphing Supply & Demand
Directions: Analyze the demand and supply schedules to create a
demand and a supply curve. Then define each law.
Supply Schedule
$18,000
for the iPhone X
Quantity Price
50 $5,000 $14,000
100 $7,000
PRICE
200 $9,000 $10,000
300 $11,000
400 $13,000 $6,000
500 $15,000
Law of supply: ______________ $2,000
_____________________________
_____________________________
300
500
50
QUANTITY
Demand Schedule
for the iPhone X $18,000
Quantity Price
50 $15,000 $14,000
PRICE
100 $14,000
200 $12,000 $10,000
300 $9,000
400 $7,000 $6,000
500 $5,000
Law of demand: _______________
_______________________________ $2,000
_______________________________
500
300
50
QUANTITY
Directions: Answer the following questions using the models you
created above.
1. Why does the supply curve move upward from left to right?
2. Why does the demand curve mirror or move downward from left to right?
Graphing Supply & Demand
3. Who do you believe is impacted by the supply curve and why?
4. Who do you believe is impacted by the demand curve and why?
Directions: Analyze the schedule to create ONE supply and demand
model.
Schedule for Samsung Galaxy s9 $18,000
Supply Price Demand $14,000
50 $5,000 500
200 $10,000 350 $10,000
250 $12,000 250
400 $17,000 100 $6,000
500 $20,000 50
$2,000
50
300
500
QUANTITY
Directions: Answer the following questions using the models you
created above.
1. What is the highest point on the supply curve? $______/______phones
2. What is the highest point on the demand curve? $_____/ _____ phones
3. The Equilibrium is the point where the supply and demand curves cross.
Place a dot there. What is the significance of this point?
Graphing Supply & Demand
ANSWER KEY Directions: Analyze the demand and supply schedules
to create a demand and a supply curve. Then define each law.
Supply Schedule
$18,000
for the iPhone X
Quantity Price
50 $5,000 $14,000
100 $7,000
PRICE
200 $9,000 $10,000
300 $11,000
400 $13,000 $6,000
500 $15,000
Law of supply: Price and quantity $2,000
increase together (a positive
slope/ upward sloping)
300
500
50
QUANTITY
Demand Schedule
for the iPhone X
Quantity Price $18,000
50 $15,000
100 $14,000 $14,000
PRICE
200 $12,000
300 $9,000 $10,000
400 $7,000
500 $5,000 $6,000
Law of demand: Quantity purchased
varies inversely with price (a
negative slope/ downward $2,000
sloping)
500
300
50
QUANTITY
Directions: Answer the following questions using the models you
created above.
1. Why does the supply curve move upward from left to right?
The more product available the more the company make
2. Why does the demand curve mirror or move downward from left to right?
Graphing Supply & Demand
Answers will vary.
Diminished marginal utility (each additional item/unit gives less
“happiness” than the one prior
The more consumed/ purchased, the less desired.
Like Costco, buy in bulk and save.
Costs a lot to build something, if you build only a few, the investment
into the resources will cost more – i.e. cars: build two cars is
expensive, build 2,000 cars is more cost effective because you can
resuse what you have invested in more.
Students may struggle with this idea, however, it can be explained
with this pizza example: I was super hungry, so I ordered a large, 24-
slice pizza. I was going to eat all of it! The first slice was amazing, so
cheesing and warm, I had to have another, then another. By slice
four I was happy, but I figure, if I eat two more sliced I’ll be even
happier, right? (Ask class if they think the Peron will be more or less
happy if they eat two more slices and why.) So, I ate the next two.
Then I looked at the pizza and whoa, I had a lot more to eat, but wow
I was not feeling so hot. I picked up another slice and when I tried to
take a bite I nearly choked! I could not eat another piece… no way!
The first slice was great, the second was good, but somewhere
along the way, each next bite became gross and I did not want as
much/ any more pizza. I think I need a nap now, and maybe some
Pepto-Bismol.
3. Who do you believe is impacted by the supply curve and why?
Producers because they create the product to fulfill consumers
wants
4. Who do you believe is impacted by the demand curve and why? Consumers
because they have wants
Graphing Supply & Demand
Directions: Analyze the schedule to create ONE supply and demand
model.
Schedule for Samsung Galaxy s9
$18,000
Supply Price Demand
50 $5,000 500
$14,000
200 $10,000 350
250 $12,000 250
$10,000
400 $17,000 100
500 $20,000 50
$6,000
$2,000
50
300
500
QUANTITY
Directions: Answer the following questions using the models you
created above.
1. What is the highest point on the supply curve? $20,000 / 500 phones
2. What is the highest point on the demand curve? $20,000 / 50 phones
3. The Equilibrium is the point where the supply and demand curves cross.
Place a dot there. What is the significance of this point? $12,000 / 250
phones. This is the point where supply and demand cross, showing were
the price should be set – where producers and consumers can seemingly
agree on a price.
