Supply Flashcards
Supply
The willingness and abi;lity of sellers to produce and offer to sell different quantities of a good at different prices during a specific time period
Law of supply
A law stating that as the price of a good increases, the quantity suppliedd of the good increases and if the price decreases the qs decreases
direct relationship
A relationship between two factors in which the factors move in the same direction. For example, as one factor rises, the other rises too
quantity supplied
The # of units a good produced and offered for sale at a specific price
supply schedule
A numerical chart illustrating the law of supply
Supply curve
A graph that shows the amount of a good sellers are willing and able to sell at various prices
technology
The body fo skills and knowledge concerning the use of resources in production
advancement in tech
The ability to produce more output with a fixed amount of resources
per-unit cost
The ~cost of a good. For example if $400,000 is spent to produce 100 the ~ or per unit cost 4000
subsidy
A financial payment made bu government for a certain action
quota
A legal limit on the number of units of a foreign produced good (import) that can enter a country
elasticity of supply
The relationship between the percentage change in quantity supplied and the percentage change in price
Elastic supply
The kind of supply that exists when the percentage change in quantity supplied is greater than the percentage change in price
inelastic supply
The kind of supply that exists when the percentage change in quantity supplied is less than the percentage change in price
unit-elastic supply
The kind of supply that exists when the percentage change in quantity supplied is equal to the percentage change in price
