Econ – Supply – Flashcards
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supply
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the number of items that producers will offer for sale at different prices at a given time
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supply schedule
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a table that shows supply
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supply curve
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a graph that shows supply
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the law of supply
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producers are willing to buy more for salve at higher prices and fewer for sale at lower prices
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move up the curve
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What happens if there's an increase in price?
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move down the curve
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What happens if there's a decrease in price?
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shift to the right
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What happens if there's an increase in supply?
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shift to the left
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What happens if there's a decrease in supply?
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false
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True or False
If a hot dog company is willing to sell 100 hot dogs per day at $2 each, then this price and quantity are the company's supply.
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false
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True or False
If a company can produce 1000 hot dogs for $1000 is the company's marginal cost.
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true
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True or False
As a supplier producers additional units of a good or service, marginal cost usually increases.
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false
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True or False
The price of tuna fish drops and fishing companies catch less tuna. This event illustrates a decrease in supply.
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true
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True or False
A supply curve should slope upward to the right.
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false
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True or False
The price effect doesn't pertain to supply.
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false
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True or False
If the price of beef increases, the supply of beef hot dogs will shift to the right.
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true
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True or False
A product's price is not a determinant of the product's supply.
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false
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True or False
Technological change doesn't affect the cost of producing a product.
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true
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True or False
Bad weather will probably cause the supply of fresh vegetables to shift to the left.
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upward to the right
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In what direction does a supply curve slope?
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As the price gets higher, producers supply more goods. As the price gets lower, producers supply less goods.
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How does the slope of the supply curve illustrate the law of supply?
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Quantity supply is specific amounts of supply at specific prices. Supply is all amounts of supply at all prices.
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Explain the difference between the terms "quantity supply" and "supply."
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no
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Do supply curve show production costs, market price, or product availability?
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no
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Is the price of the product a determinant of supply?
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producer
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Supply operates from the perspective of the ___.
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consumer
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Demand operates from the perspective of the ___.
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Elasticity of supply is the measure of the way suppliers respond to change in price. Elasticity of demand is how much a change in price affects the quantity demand.
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Explain the difference between elasticity of supply and elasticity of demand.
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marginal product of labor
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the change in output from hiring one additional unit of labor
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increasing marginal returns
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a level of production in which the marginal product of labor increases as the number of workers increases
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diminishing marginal returns
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a level of production win which the marginal product of labor decreases as the number of workers increases
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negative marginal returns
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workers get each others way and disrupt the production process
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fixed cost
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a cost that doesn't change, no matter how much of a good is produced
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variable cost
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a cost that rises or falls depending on how much is produced
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total costs
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fixed cost plus variable cost
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marginal cost
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the cost of producing one more unit of a good
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marginal revenue
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the additional income from selling one more unit of good; sometimes equal to price
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subsidy
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a government payment that supports a business or market
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excise tax
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a tax on the production or sale of a good
