Law of Supply Terms Flashcards
1
Q
Producer
A
An individual or business that supplies a good or service.
2
Q
Producer Revenue
A
The sum of the amount a producer is receiving from the sale of a good or service (price x quantity = revenue).
3
Q
Profit
A
The amount of revenue remaining after costs of production have been deducted (revenue – expenses = profit).
4
Q
Profitability
A
How much profit a business can make from supplying a good or service.
5
Q
Supply
A
The amount of a good or service a producer is willing and able to sell at a range of prices.
6
Q
Law of Supply
A
If the price of a good or service increases, the quantity supplied also increases, ceteris paribus, vice versa.
7
Q
Ceteris Paribus
A
everything else remains unchanged except the price
