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18 Cards in this Set

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  • Back
Supply
-Supply refers to the various quantities of a good or service that producers are willing to sell at all possible market prices
-Opposite of Demand
Law of Supply
The principle that suppliers will normally offer more for sale at higher prices and less at lower prices
Supply Schedule
numerical chart that illustrates the law of supply
Supply Curve
graph that illustrates the law of supply
Supply Curve curves :
upward
Demand curve curves :
Downward
Profit
the money a business receives for its products or services over and above its costs.
Profit motive
The reason most businesses exist, to earn a profit.
Market supply
If you combine the supply schedule of all the businesses , that provide the same good or service you have the Market Supply
What causes shifts in the supply curve?
Change in cost of resources
Productivity
Technology
Change in Gov. Policies
Change in Taxes and Subsidies
When supply goes down the curve moves to the
left
When Supply goes up the curve moves to the
right
Subsidy
a government payment to an individual , business or other group for certain actions
Supply Elasticity
Measure of how the quantity supplied of a good or service changes in response to changes in price.
Surplus
the amt by which the quantity supplied is higher than the quantity demanded
Shortage
Quantity demanded is higher than quality supplied
equilibrium point
the point where supply and demand are balanced. There is no shortage or or surplus
Advantages of prices

around 475
1. Prices are neutral
2. Prices are flexible
3. Prices and freedom of choice
4. Prices are familiar