Ch-5 Flashcards
Law of Supply
Tendency of suppliers to offer more of a good at a higher price
Supply
The amount of good available
Supply Schedule
A chart that lists how much of a good a supplier will offer at different prices
Variable
A factor that can change
Supply Curve
A graph of the quantity supplied of a good at different prices
Elasticity of Supply
A measure of the way quantity supplied reacts to a change in price
Fixed Cost
A cost that does not change, no matter how much of a good is produces
Variable Cost
A cost that rises or falls depending on how much is produced
Marginal Cost
The cost of producing one more unit of a good
Operating Cost
The cost of operating a facility such as a store or factory
Subsidy
A government payment that supports a business or market
Excise Tax
A tax on the production or sale of a good
Regulation
Government intervention in a market that affects the production of a good
