microeconomics chapter three Flashcards
individual supply curve
graph showing quantity a business plans to sell at each price, summarizing selling plans
ex: space in garage, use of an electric scooter
price
vertical axis
quantity
horizontal axis
price low
minimize loss by shutting down operations
law of supply
sell something for high price = sell more of it
best price
market price
price takers
market price as given and following along
supply curve
marginal cost curve
marginal product
short run
when inputs fixed
ex: extra workers in fixed office crowded and hard to work
marginal product
long run
expand production by increase inputs
ex: hiring more people, more equipment
market supply
sum of quantity supplied by each seller
high price
individual business supply large quantity
more business supply good/services, lower price
supply curve move
shift in supply curve
rightward shift
increase in supply
leftward shift
decrease in supply
assumptions
operation in comp market
determinants of supply own price output price
movement along
