supply and demand part 2 Flashcards
________ refers to the willingness and ability of producers to offer goods and services for sale
supply*
anyone who provides a good or service is a ____________
producer*
_______ influences supply
*price
________states when price decrease, quantity supplied decreases. It has a positive reaction*
law of supply
________ 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 the market
supply schedule
_________ is a table that shows how much of a good or service all producers in a market are willing to offer for sale at each price
market supply schedule*
________is a graph that shows how much of a good or service and individual producer is willing and able to offer for sale
supply curve
_____ shows the data from the market supply schedule
market supply curve
the change in total product that results from hiring one more worker is called the _______
marginal product
having each worker focusing on one area of production is ______
specialization*
a __________ shows the relationship between labor and marginal product
marginal product schedule
________ occur when hiring new workers cause marginal product to increase
increasing returns
________occur when hiring new workers cause marginal product to decrease
decreasing returns
____________ happens when marginal product becomes negative and total output decreases
negative returns
The goal of every business is to earn ________
profits*
________ are expenses that do not change
fixed cost*
__________ cost that varies as the level of production output changes
variable cost*
the extra cost of making another unit is ________ it is determined by dividing change in total cost by change in total product
marginal cost
_______is the money made from each unit sold
marginal revenue
_______ is the income a business receives from selling a product
total revenue
at the ________ total cost and revenue costs are equal
break even point
total cost =
fixed cost + variable cost
Marginal cost =
change in total product
total revenue =
marginal revenue x total product
profit =
total revenue - total cost
_________ is an increase or decrease in the amount of a good that producers are willing to sell due to change in price
change in quantity supplied
_________ occurs when something makes the producers offer different amounts for sale at every price
change in supply
six factors that cause a change in supply:
input cost, labor productivity, technology, government actions, producer expectations, number of producers
_______ price of something needed to produce a product
input cost
_________ is the amount of goods and services that a person can produce in a given time
labor productivity
__________ is a tax on the production or sale of a specific good or service
excise tax
_________ is a government payment that partially covers the cost of an economic activity
subsidy
the act of controlling business behavior through a set of rules or laws is _________
government regulations
________ has a major impact on supply
competition
___________ is also a measure of how responsive producers are to price changes
elasticity of supply
