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37 Cards in this Set
- Front
- Back
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Supply
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is the quantity of goods and services that producers are willing and able to offer at various possible prices during a given time period.
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Quantity Supplied
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is the amount of a good or service that a producer is willing to sell at each particular price.
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Law of Supply
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producers supply more goods and services when they can sell them at higher prices and fewer goods at lower prices.
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Profit
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the amount of money remaining after producers have paid all of their dues.
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Supply Curve
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plots on a graph the information from a supply schedule.
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Elastic Supply
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exists when a small change in price causes a major change in the quantity supplied.
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Inelastic Supply
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exists when a change in a good's price has little impact on the quantity supplied.
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Elasticity of Supply
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is the degree to which price changes affect the quantity supplied.
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Determinants of supply
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nonprice factors
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Taxes
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required payment of money to the government to help fund government services.
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Subsidies
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payments to private businesses by the government are called subsidies.
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Regulation
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rules about how companies conduct business.
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Total Prodcut
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all of the product a company makes in a given period of time with a given amount of input is called its total product.
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Marginal Product
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the change in output generated by adding one more unit of input.
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Law of Diminishing Returns
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describes the effect that varying the level of an input has on total and marginal product.
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Fixed Costs
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production costs that do not change as the level of output changes are called fixed costs.
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Depreciation
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lessening in value
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Overhead
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the company's total fixed costs
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Variable Costs
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change as the level of output changes.
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Total Costs
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the sum of the fixed and variable production costs is a company's total costs.
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Marginal Costs
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are the additional costs of producing one more unit of output.
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Demand
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the amount of a good or service that consumer is willing and able to buy at various possible prices during a given period.
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Quantity Demanded
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describes the amount of a good or service that a consumer is willing and able to buy at each particular price during a given time period.
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Law of Demand
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states that an increase in a good's price causes a decrease in the quantity demanded and that a decrease in price causes an increase in that quantity demanded.
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Purchasing Power
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the amount of money that people have to spend.
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Income Effect
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a change (Positive or Negative) in their purchasing power.
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Substitution Effect
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describes the tendency of consumers to substitute a similar, lower-priced product. *Wal-Mart*
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Diminishing Marginal Utility
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when a unit drops.* LIght Bull*
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Demand Schedule
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lists the quantity of goods that consumers are willing and able to buy at a series of possible prices.
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Demand Curve
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Plots this information on a graph.
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Determinants of Demand
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Consumer taste and preferences
Market Size Income Prices of related goods Consumer expectations |
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Substitute Goods
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goods that can be replaced.
*Wal-Mart* |
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Complementary Goods
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Goods that are commonly used with other goods.
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Elasticity of Demand
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is the degree to which changes in a good's price affect the quantity demanded by consumers.
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Elastic Demand
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exists when a small change in a good's price causes a major, opposite change in the quantity demanded.
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Inelastic Demand
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exists when a change in a good's price has little impact on the quantity demanded.
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Total Revenue
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refers to the totoal income that a business receives from selling its products.
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