Term
| The Quantity of goods and services that producers are willing to offer at VARIOUS possible prices during a given time period |
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| The amount a good or service that a producer is willing to sell each at a PARTICULAR price |
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| States that producers supply more goods and services when they can sell them at higher prices adn fewer goods and services when they must sell them at a lower price |
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| The amount of money remaining after producers have paid all of their costs |
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| Wages, salaries, rent, and interests on loans and any other goods or services used to manufacture a product |
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| Plots on a graph about the information from a supply schedule |
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| The degree to which price changes affect the quantity supplied |
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| Exists when a small change in price causes a major change int the quantity supplied |
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| Exists when a change in a goods price has little impact on the quantity supplied |
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| How does the concept of supply differ from the quantity supplied?< |
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Quantity supplied- quantity of a product that a producer is willing to sell at each particular price |
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| Producers supply more products at higher prices and fewer products at lower prices |
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| How does the profit motive help explain the law of supply? |
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Definition
| Producers adjust supply to maximize profits |
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| Non-price factors that can shift the entire supply curve of a product instead of simply changing the quantity supplied along the original supply curve |
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| TaxRequired payment of money to the government to help fund government services |
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| Payments to private businesses by the government |
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| Rules about how companies conduct businesses |
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A shift in supply is indicated by the entire supply curve to right or left |
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| Hows a shift in the supply curve different from a change in the quantity supplied? A change in quantity supplied is indicated by movement along the supply curve |
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Government tools- taxes, subsides, or regulations
Technology- any new methods that increase efficienscy of production
Prices of related goods- prices of similar goods of production
Producer expectations- what producers expect of the economy in the future
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| List of Determinants and Examples Prices of resources- cost of resources used to make products or provide services |
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| How can taxes and subsides affect supply? |
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Subsides reduce production costs which increase profit, which leads businesses to increase supply How can taxes and subsides affect supply?Higher taxes increase production costs which decrease profits, which lead businesses to decrease supply |
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Term
| All of the product a company makes in a given period of time - with a given amount of input |
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| The change in output generated by adding one more unit of input |
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| The law describes the effect that varuing the level of an output has a total and marginal product |
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| Law of diminishing returns |
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| Production costs that do not change as the level of output changes |
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| The company's total fixed costs |
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| Costs that change as the level of output changes |
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| The sum of fixed costs and variable costs |
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| The additional costs of producing one more unit of output |
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| How does productivity influence supply decisions? |
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| Increased productivity raises profits, encouraging an increase in supply |
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Term
| How do you detemine what happens to productivity when a products inputs change? |
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Definition
| By examining how total and marginal product changes as input changes |
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| What happens in each of the 3 states of production? |
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Definition
Increasing returns- additional inputs result in additional total and marginal product
Diminishing marginal returns- total product increases marginal product decreases
Negative return- total product decreases |
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| What difference between fixed costs and variable costs? |
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Definition
| Fixed costs do not change and variable costs change with production levels |
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