Supply : 3/7/16 Flashcards
_____ refers to the willingness and ability of producers to offer goods and services for sale.
Supply
Anyone who provides goods and services is a p_______.
Producer
The two keywords in the definition of supply are w__________ and a______.
Willingness, ability
As is true with demand, _____ is a major factor that influences supply.
Price
The ____ of _______ states that when prices decrease, quantity supplied decreases, and when prices increase, quantity supplied increases.
Law of supply
A s_____ s______ is a table that shows how much of a good or service an individual producer is willing and able to offer for sale at each price in a market.
Supply schedule
A m_____ s_____ s_________ is a table that shows how much of a good or service all producers in a market are willing and able to offer for sale at each price.
Market supply schedule
The ____-hand column of the table lists various prices of a good or service.
Left
The _____-hand column shows the quantity supplied at each price.
Right
A s_____ c_____ is a graph that shows how much of a good or service an individual producer is willing and able to offer for sale at each price.
Supply curve
A m______ s_____ c____ shows the data from the market supply schedule.
Market supply curve
All n______ s____ c_____ slope from the l____ ____-hand corner of the graph to the u_____ ____-hand corner. This is a p______ slope and show that if one value goes up, the other will go up too.
Normal supply curves, lower left, upper right, positive
The change in total product that results from hiring one more worker is called the m________ p______.
Marginal product
Having each worker focus on a particular facet of production is called s_____________.
Specialization
A m_______ p_______ s_______ shows the relationship between labor and marginal product.
Marginal product schedule
I__________ r_____ occur when hiring new workers cause marginal product to increase.
Increasing returns
D__________ r_____ occur when hiring new workers cause marginal product to decrease.
Diminishing returns
N________ r______ happens when marginal product becomes negative and total output decreases.
Negative returns
The goal of every business is to earn as much ______ as possible.
Profit
F____ c____ are expenses that the owners of a business must incur whether they produce nothing, little, or a lot. : M_______, i_______, t____, i______ c_____ on b____, and d_________.
Fixed costs, mortgage, insurance, taxes, interest charges on bond, depreciation
V______ c____ are business costs that vary as the level of production output changes. : S______, h_____ w_____, e_______ to p____ m______, r__ m________.
Variable costs, shipping, hourly wages, electricity to power machines, raw materials
Businesses find the t____ c___ of p_______ by adding f___ and v______ c____ together.
Total cost of production, fixed, variable costs
M_______ c____ is the extra cost of producing one more unit.
Marginal cost
M_______ c____ is determined by dividing change in total cost by change in total product.
Marginal cost
M_______ r_____ is the added revenue per unit of output, or the money made from each additional unit sold.
Marginal revenue
M_______ r_____ is c______!
Marginal revenue, constant
T_____ r________ is the income a business receives from selling a product.
Total revenue
You determine p____ by subtracting t____ c____ from t_____ r______.
Profit, total costs, total revenue
At the b_____-____ p____, total c____ and total r_______ are exactly equal!
Break-even point, costs, revenue
The p_____ m_______ o_____ is the level of production at which a business realizes the greatest amount of profit.
Profit maximizing output
The different points on a supply curve show changes in q______ s______.
Quantity supplied
C_____ in q_______ s________ is an increase or decrease in the amount of a good or service that producers are willing to sell because of a change in price.
Change in quantity supplied
Notice that as quantity supplied changes, the change is shown by the d_______ of m_________, right or left, along the supply curve.
Direction of movement
A movement to the ______ indicates an increase in both price and quantity supplied.
Right
A movement to the ____ shows a decrease in both price and quantity supplied.
Left
C_____ in s_____ occurs when something prompts producers to offer different amounts for sale at every price.
Change in supply
Six factors cause a change in supply. : I____ c____, l____ p_________, t________, g_________ a______, p________ e_________, and n______ of p_______.
Input costs, labor productivity, technology, government actions, producer expectations, number of producers
I____ c____ are the price of the resources needed to produce a good or service.
Input costs
L_____ p_________ is the amount of goods and services that a person can produce in a given time.
Labor productivity
T_________ involves the application of scientific methods and discoveries to the production process, resulting in new products or new manufacturing techniques.
Technology
An e_____ t___ on the production or sale of a specific good or service.
Excise tax
E_____ t_____ are often placed items such as a______ and t_______– things whose consumption the government is interested is discouraging.
Excise taxes, alcohol, tobacco
A s______ is a government payment that partially covers the cost of an economic activity.
Subsidy
Most forms of e_____ p______ in the US receive some form of s_______.
Energy production, subsidy
G____________ r_______, the act of controlling business behavior through a set of rules or laws, can affect s_____.
Government regulation, supply
C_________ has a major impact on supply, as producers enter and leave the market constantly.
Competition
E________ of s_____ is also a measure of how responsive producers are to price changes.
Elasticity of supply
The ease of changing production to respond to price change is the main factor in determining e________ of s_____.
Elasticity of supply
