| A | B |
|---|
| ceteris paribus | we assume that all other factors will remain unchanged |
| change in supply | a shift of the whole supply curve that results from a change in one of the ceteris paribus conditions of supply |
| change in quantity supplied | a movement along the supply curve that results from a change in the price of a good |
| costsof production | refers to the cost of resources and services required when producing goods or services |
| disposable income | income after taxes have been deducted and transfers added (take home pay) |
| market equilibrium | market where consumers and producers are satisfied - at the intersection of the supply and demand curves |
| income | money received |
| movement along a supply curve | occurs when there is a change in quantity supplied (because of a change in price) |
| price | the amount paid when a good is sold to a consumer |
| other goods (related goods) | goods that can be produced instead of the goods that are currently being produced (eg potatoes and carrots) |
| shift of the supply curve | results from a change in the ceteris paribus conditionsfor supply) |
| supply conditions | these factors are held constant so that we can see the relationship between price and quantity. They are costs of production, level of technology and price of other goods |
| supply curve | graph of a supply schedule |
| supply schedule | list of prices and the quantity supplied at each price |
| supply | the amount of a good or service that producers are willing and able to sell at each price |
