Download Chapter 5 Supply

Chapter 5 Supply
Supply: amount of a product that would be offered for sale at all
possible prices
Law of Supply: suppliers will offer more products at higher prices than
at low
Quantity Supplied: amount of a product that producers bring to market
at any given price
Supply Curve: graph showing the various quantities supplied at each
and every price
Market Supply Curve: graph that shows the Q of a product offered at
various P by all firms that offer the product
Change in Supply: situation in which suppliers offer different amounts
of products for sale at all possible P (pg. 117)
Break Even Point: total product a firm must sell to cover its costs
Raw Materials: unprocessed natural products
Subsidy: govt. payment to encourage or protect economic production
Short Run: period of production that’s too short for any adjustments in
production except for changes in L
Long Run: period of prod. That’s long enough for adj. in all resources
Supply Elasticity measure of the way Q S responds to changes in P
Theory of Production: the relationship between factors of production
and the output of G&S
E-Commerce: electronic business or exchanges over the internet
Fixed costs are minimal, reach more customers
Fixed Cost: costs a business incurs even if nothing is produced
Variable Cost: cost that changes when output changes
Total Cost: sum of fixed and variable costs
Total Revenue: # of units sold multiplied by avg. price per unit