| Term | Definition |
|---|
| Supply | offering goods and services for sale |
| Law of Supply | an economic rule that states that businesses will provide more products when they can sell them at highter prices and fewer products when they must sell htem at lower prices |
| Supply schedule | a table that shows the relationship between the price of a product and the quantity of the product supplied. |
| Supply Curve | A graph showing that suppliers are more willing to sell at higher prices than lower prices |
| Market Supply Curve | quantities of a commodity that will be produced by all firms in the market at each price |
| Quantity Supplied | the amount of a good or service that a firm is willing and able to supply at a given time. |
| Change in Supply | change in the entire schedule and a shift of the entire curve right or left. cause is a change in one or more determinant of supply. |
| Subsidy | a grant paid by a government to an enterprise that benefits the public |
| Supply Elasticity | a measure of how the quantity supplied of a good or service changes in response to changes in price |
| Theory of Production | Deals with the relationships between the factors of production and output of the goods and services |
| Short Run | period where at least one input used in production is fixed such as labour which can be changed or capital which cannot |
| Long Run | a period of time sufficient for factors to work themselves out |
| Law of Variable Proportion | Rule stating that short-run output will change as one input is varied while others are held constant |
| Law of Diminishing Returns | a law affirming that to continue after a certain level of performance has been reached will result in a decline in effectiveness |
| Fixed Cost | a periodic charge that does not vary with business volume (as insurance or rent or mortgage payments etc.) |
| Overhead | a hard return hitting the tennis ball above your head |
| Variable Cost | a cost that varies, in total, in direct proportion to changes in the level of activity |
| Total Cost | Fixed Cost plus Variable Cost (TFC + TVC) |
| Marginal Cost | the increase or decrease in costs as a result of one more or one less unit of output |
| E-commerce | Electronic business or exchange conducted over the Internet |
| Total Revenue | the total amount of funds received by a seller of a good or service, calculated by multiplying price per unit by the number of units sold. |
| Marginal Analysis | analysis that involved comparing marginal benefits and marginal costs. |
| Break-even Point | the amount of sales at which net sales is equal to total costs |
| Demand | the act of demanding |
| Demand Curve | A graphical representation of the law of demand |
| Market price | the price at which buyers and sellers trade the item in an open marketplace |
| Shortages | Market equilibrium: if the price of a product is at a low selling price this will discourage production but will cause the consumer to attempt buy more this will create an <excess demand> those who do not get the product will express the willingness to pay more competition among buyers will cause the price to go up |
| Surpluses | An amount produced in excess of what is needed. |
| Price Ceiling | a legally determined maximum price that sellers may charge. |
| Price Floor | floor below which prices are not allowed to fall |
| Ripple Effect | Car sales spurred growth in other parts of the economy, including jobs, roads & highways, gas stations, hotels & restaurants. |
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