Chapter Five Vocabulary: Supply Flashcards
Supply
the amount of goods available
Law of Supply
tendency of suppliers to offer more of a good at a higher price
Quantity Supplied
the amount a supplier is willing and able to supply at a certain price
Supply Schedule
a chart that lists how much of a good a supplier will offer at different prices
Variable
a factor that can change
Market Supply Schedule
a chart that lists how much of a good all suppliers will offer at different prices
Supply Curve
a graph of the quantity supplied of a good at different prices
Market Supply Curve
a graph of the quantity supplied of a good by all suppliers at different prices
Elasticity of Supply
a measure of the way quantity supplied reacts to a change in price
Increasing Marginal Returns
a level of production in which the marginal product of labor increases as the number of workers increases
Diminishing Marginal Returns
a level of production in which the marginal product of labor decreases as the number of workers increases
Fixed Cost
a cost that does not change, no matter how much of a good is produced
Variable Cost
a cost that rises or falls depending on how much is produced
Total Cost
fixed cost plus variable cost
Marginal Cost
the cost of producing one more unit of a good
