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