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Flashcards in Supply Ch.3 Deck (11):
1

Law of supply

As the price of a good rises, the quantity supplied will increase and vice versa

2

Diminishing marginal producticy

If at least one input of production is fixed, the marginal productivity of additional variable resources will eventually fall, all else held constant.

3

Determine consumer surplus

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.

4

supply curve

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

5

market supply

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.

6

increase in supply

increase in quantity of a good supplied at EVERY price. RIGHTWARD shift of supple curve.

7

Decrease in supply

decrease in the quantity of a good supplied at EVERY price. LEFTWARD shift of supply curve.

8

Subsidy

A payment from the government.

9

Tax

A payment made to government that is the result of economic activity.

10

seller expectations

The anticipated future outcomes, including prices, , that sellers associate with the production of a good.

11

Determinants of Supply

Taxes, Subsides, Resources, Technology, Price Expectations and Number of Sellers.