| Term | Definition |
|---|
| Supply | The quantity of a good or service a supplier is willing and able to provide at a particular price |
| The Law Of Supply | As the price increases the quantity supplied will also increase |
| Profit | Having money left over from revenue once expenses have been paid |
| Ceteris Paribus | All other factors remain unchanged |
| Supply Schedule | A table showing combinations of price and quantities that a firm is willing to supply |
| Supply Schedule | A table showing the quantity a producer is willing to provide at different prices |
| Movement along the supply curve | Can only be caused by a change in price |
| Market Supply | Is found by the horizontal summation of each induvidual producers supply at each and every price |
| Quota | A restriction on the ammount of goods or services allowed into a country |
| Tariff | A tax placed on goods being imported into a country |
| Indirect Tax | A tax placed on a good by the Government and is paid by producers (e.g. G.S.T.) |
| Subsidy | Money paid to a firm to encourage the production of the commodity (lowers the cost of production) |
| Merit Good | A good that society thinks is good for us and production is encouraged. Often subsidised (e.g. Hospitals) |
| Demerit Good | A good that society thinks is bad for us and production is discouraged. Often taxed or illegal (e.g. Alcohol) |
| Related Goods | Goods that have the same input into the production process, but two different outputs (e.g. Milk fat can produce butter or cheese) |
Combine with other sets
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