Chapter 10 - Supply And Price Elasticity Of Supply Flashcards
1
Q
Define - “Price Elasticity of Supply”
A
A measure of the responsiveness of quantity supplied to a change in price. It is measured by dividing the percentage change in quantity supplied by the percentage change in price.
2
Q
Define - “Producer Surplus”
A
The difference between the market price that firms receive and the price at which they are prepared to supply.
3
Q
Define - “Supply”
A
The quantity of goods that suppliers are willing to sell at any given price.
4
Q
Define - “Long Run”
A
The period of time in which all factors inputs can be varied but the state of technology remains constant.
5
Q
Define - “Short Run”
A
The period of time when at least one factor input to the production process can be varied
