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18 Cards in this Set
- Front
- Back
Supply
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-Supply refers to the various quantities of a good or service that producers are willing to sell at all possible market prices
-Opposite of Demand |
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Law of Supply
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The principle that suppliers will normally offer more for sale at higher prices and less at lower prices
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Supply Schedule
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numerical chart that illustrates the law of supply
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Supply Curve
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graph that illustrates the law of supply
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Supply Curve curves :
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upward
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Demand curve curves :
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Downward
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Profit
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the money a business receives for its products or services over and above its costs.
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Profit motive
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The reason most businesses exist, to earn a profit.
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Market supply
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If you combine the supply schedule of all the businesses , that provide the same good or service you have the Market Supply
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What causes shifts in the supply curve?
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Change in cost of resources
Productivity Technology Change in Gov. Policies Change in Taxes and Subsidies |
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When supply goes down the curve moves to the
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left
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When Supply goes up the curve moves to the
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right
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Subsidy
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a government payment to an individual , business or other group for certain actions
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Supply Elasticity
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Measure of how the quantity supplied of a good or service changes in response to changes in price.
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Surplus
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the amt by which the quantity supplied is higher than the quantity demanded
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Shortage
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Quantity demanded is higher than quality supplied
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equilibrium point
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the point where supply and demand are balanced. There is no shortage or or surplus
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Advantages of prices
around 475 |
1. Prices are neutral
2. Prices are flexible 3. Prices and freedom of choice 4. Prices are familiar |