principles/determinants of supply

change in supply

shift in a given supply curve caused by a change in one of the non-price determinants of supply of the good

change in quantity supplied

movement along the supply curve in response to a change of price, ceteris paribus

shift in supply curve

supply curves will either shift to the left (decrease in supply) or right (increase in supply)

elasticity of supply formula

% change of quantity supplied divided by % change in price

Elastic Supply:

where the % change of quantity supplied is > than the % of the change in price

Inelastic Supply:

where the % change of quantity supplied is < than the % of the change in price

shortage

Condition in which the Quantity demanded is greater than the Quantity Supplied

surplus

Condition in which the Quantity supplied is greater than the Quantity Demanded

price ceiling

Government regulation setting a maximum legal price for a G or S
—benefits consumer with a maximum purchase price.

price floor

Government regulation setting the minimum legal price for a Good or Service. —benefits the Producer with a minimum selling price.

rent control

...maximum legal Price established by government that Landlords can charge in certain municipalities.

equilibrium price

Price at which a good is bought and sold in market equilibrium.