This report examines the teacher supply/demand balance nationally and in the western region of the United States and relates the findings to the larger issue of teacher quality. Chapter 1 reviews historical cycles of teacher supply and demand. The second chapter compares supply and demand for new teacher graduates in the western region and in 14 Western Interstate Commission for Higher Education (WICHE) states. Chapter 3 looks at conditions affecting teacher supply and outlines strategies for developing plans and programs for dealing with imbalances. The last chapter offers a discussion of the costs and consequences of teacher shortages with implications for the western states. An undersupply of new teacher graduates is projected in most western states over the next 15 years. The report points out the historically heavy dependence of 14 western states--Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, New Mexico, Nevada, North Dakota, Oregon, Utah, Washington, and Wyoming--on teachers trained outside their borders to meet expected needs. The question raised is can western states continue to rely on this source of new teachers as national shortages intensify, and if so, at what cost. (JD)