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.