| A | B |
|---|
| supply | amt. of a product offered for sale at all possible prices |
| Law of Supply | suppliers will offer more for sale at high prices |
| supply schedule | A listing of the various quantities of a product supplied at all prices |
| supply curve | a graph showing the various quantities supplied at each price |
| along | A change in quantity supplied is shown as movement ____ the supply curve. |
| shift | A change in SUPPLY is shown as a ____ in the supply curve. |
| change in supply | Suppliers offer different amounts of products for sale at all possible prices. |
| subsidy | A government payment to a business to protect a certain type of economic activity. |
| elastic supply | Doubling the price causes the quantity supplied to triple. |
| inelastic supply | Doubling the price causes the quantity supplied to increase by a 1/2. |
| unit elastic | Doubling the price causes the quantity supplied to increase in the same proportion. |
| Law of Variable Proportions | Output will change as one input is varied & others remain constant. |
| production function | Concept that describes the law of variable proportions |
| raw materials | Unprocessed natural products |
| marginal product | The extra output or change caused by one more unit of variable input. |
| stages of production | increasing returns, diminishing returns, and negative returns. |
| diminishing returns | Output increases, but at a slower rate. |
| fixed costs | Overhead is an example of these. |
| break-even point | Total product a business needs to sell to cover total costs. |
| profit-maximizing quantity | Is reached when marginal cost equals marginal revenue. |
