Supply

Law of supply

A principle in economics that states that as the price of a good, service or resource rises the quantity supplied will increase and vice versa, all else held constant

Diminishing marginal productivity

The principle that if at least one input of production is fixed, the marginal productivity of additional variable resources will eventually fall, all else held constant

Supply schedule

A table representation of the relationship between the price of a good, service or resource and the quantities producers are willing and able to supply over a fixed time period, all else held constant

Supply curve

A graphical representation of the relationship between the rice of a good, service, or resource and the quantities producers are willing and able to supply over a fixed time period, all else held constant

Quantity supllied

The quantity of a good, service, or resource that producers are willing and able to supply at a given price

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, all else constant

Change / Shift in supply

A change in the quantity of a good, service, or resource suppliet at every price

Graphical increase in supply

Represented by a rightward shift of the supply curve

Graphical decrease in supply

Represented by a leftward shift of the supply curve

Movement along a supply curve

A change in the quantity of a good, service, or resource supplied due to a change in its price

Subsidy

A payment made by the government that does not necessarily require an exchange of economic activity in return. Subsidies most often take the form of payments to businesses

Tax

A payment made to government that is the result of economic activity. Taxes are generally collected from both individuals and firms

Technology

The knowledge, inventions and innovations that can potentially increase resource productivity

Sellers

Market participants who are willing and able to sell goods, services or resources

Seller expectations

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