set 5 - supply

supply

the willingness and ability of producers to sell a good or service at a given price in a given time period

law of supply

as price rises, quantity supplied rises; as price falls quantity supplied falls

movement along the supply curve

a change in quantity supplied caused by a change in price only

shift of the supply curve

a change in supply at every price, caused by a factory other than price (e.g. costs of production or technology)

price electricity of supply

a measure of how responsive quantity supplied is to a change in price

elastic supply

when a change in price causes a proportionally bigger change in quantity supplied

inelastic supply

when a change in price causes a proportionally smaller change in quantity supplied

regulation

a rule or directive set by authority to control and activity

subsidy

a payment made by the government to producers to encourage the output of a good or service

costs of production

the expenses a firm faces in producing goods or services, which can affect hie much it is willing to pay