Supply Flashcards
A principle in economics that states that as the price of a good, service, or resource rises, the quantity supplied will increase, and vise versa, with all else held constant.
Law of supply
The principle that if at least one input of production is fixed, the marginal productivity of additional variable resources will eventually fall, all else held constant.
diminishing marginal productivity.
A tabular representation of the relationship between the price of a good, service, or resource and the quantities producers are willing and able to supply over a fixed time period, all else held constant.
Supply schedule
A graphical representation of the relationship between the price of a good, service, or resource and the quantities producers are willing and able to supply over a fixed time, all else held constant.
supply curve
The overall, or total, supply of a good, service, or resource. It represents the horizontal summation of the quantities supplied by individuals, firms, states, or even nations at each price over a fixed time period.
Market supply
A change in the quantity of a good, service, or resource supplied at every price. Represented by supply curve shifting left or right
Change (shift) in supply
A change in the quantity of a good, service, or resource supplied due to a change in its price.
movement along the supply curve
A payment made by the government that does not necessarily require an exchange of economic activity in return.
Subsidy
A payment made to government that is the result of economic activity.
tax
The knowledge, inventions, and innovations that can potentially increase resource productivity
technology
Market participants who are willing and able to sell goods, services, or resources.
sellers
The anticipated future outcomes, including prices, that sellers associate with the production of a good, service, or resource.
seller expectations
