What is supply? |
|
The quantity of goods and services and services that producers are willing to offer at VARIOUS possible prices during a given time period. |
| |
What is Quantity supplied? |
|
The amount of good and services that a producer is willing to sell at EACH particular price. |
| |
What does the law of supply infer? |
|
Producers supply more goods and services when they can sell them at higher prices and vice versa. The higher the P the higher the QS. |
| |
What is the Elasticity of supply? |
|
The degree to which price effect the quantity supplied |
| |
What 3 things cause an ELASTIC supply? |
|
1) Quickly made
2) Inexpensively made
3) Uses few, readily available resources
looks horizontal |
| |
List the 5 determinants of supply |
|
1) Price of resources
2) Technology
3) Gov't tools
4) Competition
5) Producer expectations |
| |
In which three ways does the government effect the supply? |
|
1) taxes
2) Subsidies- money given to private businesses.
3) Regulations set. |
| |
What is productivity? |
|
Tells producers how efficiently their resources are being used. |
| |
What is Marginal cost? |
|
the additional cost of each unity produced with another level of input |
| |
What is the cost of production. |
|
The total cost of materials, labor, and other inputs required in the manufacture of a product. |
| |