Economics - Ch. 5/6 Vocab

5.1, 6.2, 6.3

supply

schedule of quantities offered for sale at all possible prices in the market

Law of Supply

rule stating that more will be offered for sale at high prices than at lower prices

supply schedule

tabular listing showing the quantities produced or offered for sale at each and every possible price in the market

supply curve

graphical representation of the quantities produced at each and every possible price in the market

market supply curve

supply curve that shows the quantities offered at various prices by all firms that sell the product in a given market

quantity supplied

amount offered for sale at a given price; point on the supply curve

change in quantity supplied

change in amount offered for sale in response to a price change; movement along the supply curve

change in supply

different amounts offered for sale at each and every possible price in the market; shift of the supply curve

subsidy

government payment to encourage or protect a certain economic activity

supply elasticity

responsiveness of quantity supplied to a change in price

economic model

set of assumptions in a table, graph, or equations used to describe or explain economic behavior

market equilibrium

condition of price stability where the quantity demanded equals the quantity supplied

surplus

situation where quantity supplied is greater than quantity demanded at a given price

shortage

situation where quantity supplied is less than quantity demanded at a given price

equilibrium price

price where quantity supplied equals quantity demanded; price that clears the market

price ceiling

maximum legal price that can be charged for a product

minimum wage

lowest legal wage that can be paid to most workers

price floor

lowest legal price that can be charged for a product

target price

agricultural floor price set by the government to stabilize farm incomes

nonrecourse loan

agricultural loan that carries neither a penalty nor further obligation to repay if not paid back

deficiency payment

cash payment making up the difference between the market price and the target price of an agricultural crop