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19 terms

Economics NICEJAG

STUDY
PLAY
Natural/Manmade Phenomenon
(N)
Input Costs
(I)
Competiton
(C)
Expected price
(E)
Joint Supply
(J)
Alternate goods
(A)
Government action
(G)
Supply
NICEJAG
Expected Price
expecting change in future product can effect producers willingness to supply product; expectation that price will increase may cause firms to add more workers or expand facilities causing increase in supply
Alternate Goods
higher prices of other goods can cause producers to switch production to an alternative good to increase profit; when the price of alternative goods declines, producers may decide to produce original goods instead to increase supply and profit; substitution makes a decline in supply of the original good
Competition
larger number of suppliers= greater supply; more firms supply= curve shifts to right; less firms supply=firms shift to left; ex: more tattoo parlors=more tattoos
Joint Supply
production of one good leads to production of another
Input Costs
The cost of labor, capital and natural resources needed to produce a good or service; , if objects cost more there will be less supplied/ the amount of money it costs to raise a good or service
Government Action
taxes are price; increase in tax increases production cost which reduces supply; subsidies are taxes in reverse; production of a good that lowers producer's cost and increases supply
Natural/Manmade Phenomenon
improvement in techniques of production enables firms to produce units of output using fewer resources; using fewer resources lowers production cost and increases supply
decrease
shift to the left =
increase
shift to the right =
supply
amount of product producers are willing able to make and slll at possible prices
Law of Supply
as price rises, quantity supplied rises; as quantity supplied falls, price falls