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37 Cards in this Set

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