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22 Cards in this Set
- Front
- Back
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What is supply?
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The willingness and ability of sellers to produce and offer to sell different quantities of a good at different prices during a specific time period.
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What does the law of supply say?
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A law stating that as the price of a good increases, the quantity supplied increases and as the price of a good decreases, the quantity supplied decreases
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What is the "Direct Relationship" between price and quantity supplied?
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Price and quantity supplied move in the same direction
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What do we call the number of units of a good produced and offered for sale at a specific price?
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Quantity Supplied
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A numerical chart illustrating the law of supply is called _________ .
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Supply schedule
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A graph that shows the amount of a good sellers are willing and able to sell at various prices is called __________.
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Supply curve
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In what direction does a supply curve slope?
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Upward and to the right
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Under what 2 conditions is a supply curve vertical?
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1. When additional units can no longer be produced
2. When there is no time to produce additional units for a particular event |
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What do we call the skills and knowledge used in production?
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Technology
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What are the four resources or factors of production?
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Land, Labor, Capital, and Entrepreneurship
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What do we call financial aid or payments made by a government to a certain industry?
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Subsidy
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What do we call a legal limit on the number of units of a foreign-produced good (import)that can enter a country?
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Quota
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What are the 8 factors that cause supply to change or supply curves to shift?
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1.Resourc Prices
2.Techonology 3.Taxes 4.Subsidies 5.Quotas 6.Number of Sellers 7.Future Price 8.Weather |
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What is the only factor that can cause a change in quantity supplied?
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Price
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What do we call a supply curve for an individual business or firm?
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A firm's supply curve
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What do we call a supply curve that represents the sum or total of all individual firm's supply curves?
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Market Supply Curve
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In what direction does a supply curve shift when there is an increase in supply?
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Right
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In what direction does a supply curve shift when there is a decrease in price?
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Left
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What is "elasticity of supply"?
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The relationship between the percentage change in quantity supplied and the percentage change in price.
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What is "elastic supply"?
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Quantity supplied changes by a larger percentage than the percentage change in price
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What is inelastic supply?
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Quantity supplied changes by a smaller percentage than the percentage change in price.
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What is "unit-elastic" price?
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Quantity supplied changes by the same percentage as the percentage change in price.
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