Econ lecture - Supply

Vocabulary flashcards covering key supply concepts from the Econ lecture, including curves, costs, quantities, shifts, and related concepts.

Supply Curve

The relationship between price and the quantity firms are willing to supply; typically upward sloping when holding other factors constant.

Quantity Supplied

A specific amount producers are willing to sell at a given price; a point on the supply curve.

Supply

The entire relation showing the quantity firms are willing to sell at every price (the full supply curve).

Market Supply Curve

The horizontal sum of all individual firm supply curves in a market.

Individual Supply Curve

The supply curve for a single firm showing its quantities at each price.

Shift of the Supply Curve

A change in supply due to nonprice factors that moves the entire curve left or right.

Rightward Shift

An increase in supply at all prices; the supply curve moves to the right.

Leftward Shift

A decrease in supply at all prices; the supply curve moves to the left.

Change in Quantity Supplied

Movement along the same supply curve due to a change in price.

Marginal Cost

The cost of producing one additional unit of output.

Total Cost

The sum of fixed costs and variable costs for producing a given quantity.

Fixed Cost

Costs incurred before production begins that do not vary with output.

Variable Cost

Costs that vary with the level of output.

Total Expenditure

Amount spent by consumers to buy a good; price times quantity.

Total Revenue

Revenue earned by producers from selling a good; price times quantity.

Producer Surplus

Total revenue minus variable cost (ignoring fixed cost); the sum of the differences between price and marginal cost across units produced.

Marginal Value

Value of each additional unit to a consumer; the incremental value that builds total value.

Total Value

The total amount consumers are willing to pay for all units of a good.

Law of Demand

Demand curves are downward sloping due to diminishing marginal value.

Marginal Cost Curve

The marginal cost curve; on graphs it often coincides with the supply curve and helps explain areas like total cost.

Demand Schedule

A table listing quantities demanded at different prices.

Supply Schedule

A table listing quantities supplied at different prices.

Input Price

Prices of inputs such as labor and materials; changes affect marginal cost and shift the supply curve.

Technology and Productivity

Advances in production methods that change output per input; can shift the supply curve right if productivity increases.

Number of Suppliers

The count of firms in the market; more suppliers increase market supply, fewer decrease it.

Future Price Expectations

Expected future prices influence current supply; if a higher future price is expected, producers may supply less today.

Opportunity Cost

The value of the next best alternative forgone when producing a good.

Shutdown Rule

A short-run decision rule to stop production if price cannot cover variable costs (discussed in detail later).