Flashcards in Chapter 5- Section 1 Deck (18):
The amount of a product that would be offered for sale at all possible prices that can prevail in the market
The principle that suppliers will normally offer more for sale at high prices and less at lower prices
Law of supply
A listing of the various quantities of a particular product supplied at all possible prices in the market
A graph showing the various quantities supplied at each and every price that might prevail and the market
The supply curve that shows the quantities offered at various prices by all firms that offer of the product for sale in a given market
Market supply curve
The amount that producers bring to market at any given price
The change in amounts offered for sale in response to a change in price
Change in quantity supplied
What does a change in quantity supplied respond to?
Change in price
Why does the supply curve shift to the left?
Decrease in supply
What are seven factors that determine whether supplies increase or decrease?
Costs of inputs, productivity, technology, taxes and subsidies, expectations, government regulations, and number of sellers
The situation with suppliers offer different amounts of products for sale at all possible prices in the market
Change in supply
How does cost of inputs affect the change in supply?
Labor costs could be one affect if they go down the supply curve shifts to the right if they go up the supply curve shifts to the left
How does productivity effects change in supply?
When workers work more efficiently productivity should increase if workers are unmotivated, untrained, or unhappy productivity could decrease
How couldn't you technology affect that change in supply?
The introduction of a new machine, chemical, or industrial process can affect supply by lowering the cost of production or by increasing productivity
A government payment to an individual, business, or other group to encourage our protect a certain type of economic activity
A measure of the way in which quantity supplied response to a change in price
What characterizes an inelastic supply curve?
Products that take longer to manufacture and smaller change in quantity supplied