| A | B |
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| supply curve | plots on a graph the information from a supply schedule |
| supply | is the quantity of goods and services that producers are willing and able to offer at various possible prices during a given time period |
| quantity supplied | is the amount of a good or service that a producer is willing to sell at each particular price |
| law of supply | states that producers supply more goods and services when they can sell them at higher prices and fewer goods and services when they must sell them at lower prices |
| profit motive | desire to make money |
| profit | the amount of money remaining after producers have paid all of their costs |
| costs of production | the costs involved in producing a good/service such as wages and rent |
| supply schedule | lists each quantity of a product that producers are willing to supply at various market prices |
| supply curve | plots on a graph the information from a supply schedule |
| elasticity of supply | is the degree to which price changes affect the quantity supplied |
| elastic supply | exists when a small change in price causes a major change in the quantity supplied |
| inelastic supply | exists when a change in a good's price has little impact on the quantity supplied |
