SUPPLY TEST

Subsidies

A payment to a business, or other group to encourage or protect a certain type of economic activity

Taxes

Mandatory financial charges imposed by a government on individuals entities

Change in supply due to expectations

When producers alter their rate of production based on what they predict will happen

Change in supply due to number of sellers

Shift in entire supply curve caused by new firms entering or exiting firms leaving a market

Government regulations

Enforceable rules and laws by the government to influence behavior of business and individuals with economy

Cost of resources

A change in cost of productive inputs (land, labor, capital) can cause a change in supply

Law of supply

States the more will be offered for sale at higher prices than at lower prices

Supply schedule

A listing of various quantities of a particular product or producer would supply at all possible prices in the market

Supply curve

A graph showing the various quantities supplied at all positive prices that might prevail in the market at any given time

A change in quantity supplied

Change in amount offered for sale in response to a change in price

Change in supply

Supplies offer different amounts of a product for sale at all possible prices in the market

Technology

Methods, processes, and knowledge used to transform inputs into outputs, rather than physical machines

Productivity

Measure of efficiency defined as the ratio of goods and services produced to the inputs used

Supply

Amount of a product grown, produced or acquired and offered for sale at all possible prices that could prevail in market

Cost

The money spent to make or buy something

Profit

The money left after paying all costs

Revenue

Total money a business makes from selling goods or services

Shortage

When people want to buy more of a product than is available at the current price

Equilibrium

The point where supply and demand are equal

Price ceiling

A legal maximum price that sellers are allowed to charge for a product

Price floor

A legal minimum price that sellers must charge for a product

Surplus

When there is more supply than demand

Variable cost

A cost that changes depending on how much is made

Fixed cost

A cost rush stays the same how much is produced