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Economics: Chapter 5 Section 1

Terms in this set (17)

What determines whether a business's supply curve is elastic or inelastic?
how fast a business can adjust to new prices
What is the difference between supply elasticity and demand elasticity?
the ability to delay a purchase and the number of substitutes are important for demand elasticity but not supply elasticity
How does the price of a product affect the quantity offered for sale?
when prices are high, quantity offered for sale may increase
when prices are low, quantity offered for sale may decrease
Changes in Supply (7)
Costs of Input
Productivity
Technology
Taxes and Subsidies
Expectations
Government Regulations
Number of Sellers
amount of a product that would be offered for sale at all possible prices that could prevail in the market
supply
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
supply schedule
a graph showing the various quantities supplied at each and every price that might prevail in the market.
supply curve
the supply curve that shows the quantities offered at various prices by all firms that offer the product for sale in a given market
market supply curve
the amount that producers bring to market at any given price
quantity supplied
the change in amount offered for sale in response to a change in price
change in quantity supplied
a situation where suppliers offer different amounts of products for sale at all possible prices in the market
change in supply
a government payment to an individual, business, or other group to encourage or protect a certain type of economic activity
subsidy
a measure of the way in which quantity supplied responds to a change in price
supply elasticity
Richard Sears
founded Sears and Roebuck and Company in 1893
started out with watches and then became a huge retail business and employs more than 300,000 people
Milton Hershey
failed as a candy seller and family shunned him
he then tried one more time and made "Hershey's Crystal A", which then made him a millionaire
John Johnson
started a magazine called Negro Digest
national magazines for African Americans
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